economic development incentive guidelines 11-10-14
TRANSCRIPT
Incentive Guidelines
2
Table of Contents City of Coffeyville Cash Incentives .............................................................................................4
Retail/Commercial Business Incentive Program ......................................................................5
Manufacturing/INdustrial Business Incentive Program ............................................................8
Redevelopment Projects ............................................................................................................ 11
Neighborhood Revitalization District .................................................................................... 12
Tax Increment Financing (TIF) ............................................................................................. 15
State Historic Rehabilitation Tax Credit ................................................................................ 19
Brownfields Targeted Assessment ......................................................................................... 21
Downtown Redevelopment Program ..................................................................................... 22
Infrastructure Development ....................................................................................................... 24
Community Improvement District (CID) ............................................................................... 25
Transportation Development District (TDD) ......................................................................... 28
KDOT Economic Development Program .............................................................................. 31
KDOT State Rail Service Improvement Fund ........................................................................ 32
KDOT Kansas Airport Improvement Program ....................................................................... 33
City Connecting Link Resurfacing Program (KLINK) ........................................................... 34
Geometric Improvement Program (GI) .................................................................................. 35
Incentive Programs for Job Creation & Capital Projects ............................................................ 36
Rural Opportunity Zone (ROZ) ............................................................................................. 37
Local Employee Inducement Program ................................................................................... 38
High Performance Incentive program (HPIP) ........................................................................ 40
Promoting Employment Across Kansas (PEAK) ................................................................... 41
Machinery & Equipment Expense Deduction ........................................................................ 43
Sales and Property Tax Exemptions....................................................................................... 44
Other State Tax Incentives and Business Initiatives ............................................................... 45
Loan Programs .......................................................................................................................... 46
E-Community Business Loan ................................................................................................ 47
CDBG Micro-Loan ............................................................................................................... 49
USDA RDA revolving loan fund ........................................................................................... 51
Coffeyville small business loan program ............................................................................... 53
Coffeyville Small Business Loan Guarantee Program ............................................................ 55
KDOT Transportation Economic Development Loan Program (TEDL) ................................. 57
Southeast Kansas Revolving Loan Fund ................................................................................ 58
Incentive Guidelines
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Rural Economic Development Loan & Grant (REDLG) ........................................................ 61
USDA Business & Industry Guaranteed Loans (B&I) ........................................................... 62
USDA Rural Energy for America Program Guaranteed Loan Program (REAP Loans) .......... 64
U.S. Small Business Administration 504 Program ................................................................. 66
Worker Training Incentives ....................................................................................................... 67
Kansas Industrial Training (Kit) & Kansas Industrial Retraining (KIR) Programs ................. 68
Workforce Aligned with Industry Demand (Workforce AID) ................................................ 69
Bond Financing Programs ......................................................................................................... 70
Sales Tax Revenue (STAR) Bonds ........................................................................................ 71
Industrial Revenue Bonds ...................................................................................................... 74
Kansas Private Activity Bond (PAB) ..................................................................................... 77
Community Development Block Grant Programs ...................................................................... 78
Small Cities CDBG Economic Development Program ........................................................... 79
Housing Programs ..................................................................................................................... 80
Infill Development Grant....................................................................................................... 81
Targeted Minor Home Repair Program .................................................................................. 83
Distressed Property Reinvestment Program ........................................................................... 85
Demolition Grant Program .................................................................................................... 87
Moderate Income Housing Program - Coffeyville ................................................................. 90
First Time Homebuyer Program - KHRC .............................................................................. 91
Home Rental Development Program ..................................................................................... 92
Low Income Housing Tax Credit (LIHTC) ............................................................................ 93
Weatherization Assistance Program....................................................................................... 95
Entrepreneur Support Programs................................................................................................. 96
Innovation Growth Program .................................................................................................. 97
Other Development Programs ................................................................................................... 98
Template for Incentive Guidelines ......................................................................................... 99
Cash Incentives
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City of Coffeyville Cash Incentives
Retail/Commercial Business Incentive Program
Manufacturing/Industrial Business Incentive Program
Cash Incentives
5
RETAIL/COMMERCIAL BUSINESS INCENTIVE PROGRAM
PURPOSE
The City of Coffeyville recognizes that retail
growth is essential to Coffeyville’s economic
and social well-being. The City is committed to
expanding Coffeyville’s underserved retail
sector through incentive programs and a
streamlined process to fast-track potential retail
development.
To achieve retail growth, the City of Coffeyville
is:
Offering a sales tax based incentive
program to new and expanding retailers.
Helping retailers find available buildings,
sites and lease space.
Establishing relationships with national
and local retailers, brokers and developers,
and providing data and resources as
needed.
Recruiting targeted retailers to Coffeyville.
AUTHORIZATION
On October 28, 2014, the City Commission
approved ordinance R-14-82 that created an
Economic Development Incentive Fund from
one time funds held from the Coffeyville
Resources Nitrogen Fertilizer Settlement of
$2.5 Million. These funds cannot be disbursed
without a majority vote by the City
Commission, and may only be used for
Economic Development purposes.
ELIGIBLE AREAS
Businesses in the retail or commercial industry
that are located or will be located within the city
limits of Coffeyville are eligible for this
program. If a business would be located outside
these limits, they must be willing to have the
property where the business will be located
annexed by the City in order to be eligible for
this incentive program, unless special
accommodations are approved by the City
Commission.
ELIGIBLE APPLICANTS
Under the guidelines of the retail incentive
program, a retailer is defined as a purveyor of
consumer goods or services subject to sales tax.
This would include businesses such as Clothing
stores, restaurants, hotels, or even hardware
stores.
This program is divided into two categories for
retail: Targeted Retail and General Merchandise
and Services. Targeted Retail includes
businesses that have been specifically identified
as priorities through market research. Targeted
brand incentives will be discounted by 10% for
substitution of sales captured from existing
retailers. Incentive amounts are only estimates
and are at the discretion of the Coffeyville City
Commission.
The General Merchandise & Services category
are new or expanding stores or restaurants with
annual sales of less than $3 Million. Incentives
in this category will be discounted by 80% for
substitution of sales captured from existing
retailers. Incentive amounts are only estimates
and are at the discretion of the Coffeyville City
Commission.
ELIGIBILITY CRITERIA
Targeted Brands:
Annual Sales of more than $3 Million
Must be located in the city limits of
Coffeyville, or be willing to be annexed by
the City.
General Merchandise & Services:
Annual sales less than $3 Million
Must be located in the city limits of
Coffeyville, or be willing to be annexed by
the City.
PROGRAM BENEFITS/ELIGIBLE USES
Targeted Brands:
Funds are encouraged to be used for facility
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or infrastructure improvements, but may be
used for capital, personnel, or any other use
that the company outlines in their proposal.
General Merchandise or Services:
Incentive funds are to be utilized as listed
below, unless special accommodations are
approved by the City Commission or there
are funds remaining after the three
stipulations listed below are met:
o The “first draw” from the incentive will
be applied to fees normally levied by the
City of Coffeyville. These fees include
but are not limited to water and sewer
taps, sanitary sewer impact fees,
building permits, storm-water fee-in-
lieu, fire lines, etc. These fees will be
waived by the City with no
reimbursement.
o The “Second Draw” against the
incentive will be applied to required
public infrastructure improvements that
lie within the public right-of-way
including but not limited to sidewalks,
sanitary sewer or water line extensions,
storm drainage improvements, etc. Out
of pocket costs for these improvements
will be funded through the economic
development sales tax with technical
assistance and some labor where
appropriate and available, to be provided
by the City with no reimbursement.
o The “Third Draw” against the incentive
will be provided as an incentive to
stimulate additional property
investments that exceed the minimum
building and site development
requirements to improve the aesthetic
quality of commercial properties. This
includes façade and aesthetic
enhancements that will result in
significant aesthetic or visual
improvements to the exterior appearance
of the building, for both new and
existing buildings and sites, as seen from
the street.
FUNDING CALCULATOR
Targeted Retail Formula:
Targeted Retail incentives will be discounted by
10% for substitution of sales captured from
existing retailers. Incentive amounts are only
estimates and are at the discretion of the
Coffeyville City Commission.
Annual Sales Revenue – 10% = Net New Sales Net New Sales x 3% Sales Tax = Annual Tax Revenue Annual Tax Revenue x 10 years = Total Tax Revenue Total Tax Revenue - 50% Cap = Maximum Incentive
Example:
Annual Sales Revenue: $5,000,000 Discount for Sub: 10% Net New Sales: $4,500,000 Sales Tax Rate: x 3% Annual Sales Tax Revenue: $135,000 10 Year Tax Revenue: $1,350,000 Incentive Cap: - 50%
Max Incentive: $675,000.00
General Merchandise or Services Formula:
General Merchandise or Service incentives will
be discounted by 80% for substitution of sales
captured from existing retailers. Incentive
amounts are only estimates and are at the
discretion of the Coffeyville City Commission.
Annual Sales Revenue – 80% = Net New Sales Net New Sales x 3% Sales Tax = Annual Tax Revenue Annual Tax Revenue x 10 years = Total Tax Revenue Total Tax Revenue - 50% Cap = Maximum Incentive
Example:
Annual Sales Revenue: $2,000,000 Discount for Sub: -80% Net New Sales: $400,000 Sales Tax Rate: x 3% Annual Sales Tax Revenue: $12,000 10 Year Tax Revenue: $120,000 Incentive Cap: - 50%
Max Incentive: $60,000
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APPLICATION/APPROVAL
PROCEDURE
To be eligible for this incentive offer,
companies must fill out Form A - Application
for City of Coffeyville Loan/Incentive Form,
found in the Appendix of this document or on
the City website at
www.coffeyville.com/index.aspx?nid=296
To speed up the process of the incentive
package, you can complete the first page of the
application and send it to the contact
information listed below. If you are seeking
state incentives, it is also recommended that you
fill out form B – Kansas Incentive Request Form
as well.
Staff will review the application and meet with
you to discuss any other incentives you may be
eligible for, as well as show you any facilities
that might help your business. Depending on
credit-worthiness and sales tax revenue history,
the incentive could be structured as an upfront
cash payment, an annual disbursement based on
sales tax revenues for that year, or a forgivable
loan based on new jobs created. Once the
application is approved, the process can move
very quickly to ensure that your project does not
wait on the City to proceed.
REPORTING REQUIREMENTS
For General Merchandise and Service
businesses, annual sales reports are required to
determine the annual incentive payment. If a
forgivable loan is chosen as the incentive
program best suited for the project, annual job
reports and employee residency reports will be
required to forgive any payments.
SPECIAL PROGRAM REQUIREMENTS
As with any incentive or program through the
City of Coffeyville, all final funding decisions
must be approved by the City Commission.
CONTACT
City of Coffeyville
Trisha Purdon, Economic Development
11 E. 2nd Street, P.O. Box 1629
Coffeyville, KS 67337
Phone: (620)252-6171
Email: [email protected]
Cash Incentives
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MANUFACTURING/INDUSTRIAL BUSINESS INCENTIVE PROGRAM
PURPOSE
The City of Coffeyville recognizes that the
growth of Manufacturing and Industrial
businesses are essential to Coffeyville’s
economic and social well-being. The City is
committed to expanding Coffeyville’s
manufacturing base through incentive programs
development.
To achieve manufacturing and industrial
growth, the City of Coffeyville is:
Offering an employee based incentive
program to new and expanding businesses.
Helping businesses find available
buildings, sites and lease space.
Establishing relationships with national
and local manufacturers, brokers and
developers, and providing data and
resources as needed.
Recruiting targeted industries to
Coffeyville.
AUTHORIZATION
On October 28, 2014, the City Commission
approved ordinance R-14-82 that created an
Economic Development Incentive Fund from
one time funds held from the Coffeyville
Resources Nitrogen Fertilizer Settlement of
$2.5 Million. These funds cannot be disbursed
without a majority vote by the City
Commission, and may only be used for
Economic Development purposes.
ELIGIBLE AREAS
Businesses located or will be located within the
city limits of Coffeyville or in the Coffeyville
Industrial Park are eligible for this program. If
a business would be located outside these limits,
they must be willing to have the property where
the business will be located annexed by the City
in order to be eligible for this incentive program,
unless special accommodations are approved by
the City Commission.
ELIGIBLE APPLICANTS
Incentives are available to any Manufacturing or
Industrial business that will hire more than 5
employees, and pay the median wage of at least
100 percent (100%) of the county median wage
(CMW) or industry NAICS as published by the
Kansas Department of Labor (KDOL) at the
time of application. (Note: If the median wage
does not qualify the project, the annual average
wage for the jobs can be used.)
NAICS Code lookup:
http://www.kansascommerce.com/index.aspx?
nid=136
County Median Wage Lookup:
http://www.kansascommerce.com/index.aspx?
nid=141
Click on the link at the bottom of the page
labeled: PEAK Attachment A: County Median
Wages
ELIGIBILITY CRITERIA
Building/Lot located in Coffeyville or
Coffeyville Industrial Park
Meet minimum wage standards
Creates 5 new jobs
PROGRAM BENEFITS/ELIGIBLE USES
This program is established to aid new and
existing businesses in setting up or expanding
their company in Coffeyville. The utilization of
the incentive funding provided can be used for a
variety of purposes including moving expenses,
property acquisition, capital expenditures,
personnel expansion, or materials and supplies.
There are 3 programs businesses may be eligible
for depending on credit-worthiness, jobs impact,
and immediate need.
Program 1 is a cash incentive that is
provided up-front with few (if any)
restrictions.
Cash Incentives
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Program 2 is a Forgivable Loan Program
that is based on new hires (that reside in
Coffeyville School District) for the
forgiveness/repayment. The loan funding
will be provided either up-front or after the
company completes the move to
Coffeyville.
Program 3 is a combination of both that
would be a forgivable loan that is paid out to
the business annually depending upon how
many jobs are created over the baseline
number provided at the initial application
date. This program is ideal for new
entrepreneurs that do not have any business
history, but will have more than 5 new
employees in Coffeyville.
Any incentive that allows for forgiveness of any
amount will be based on the residency of the
employees at the company. All programs and
incentives must be approved by the Coffeyville
City Commission before any funding is released
to the company.
Forgivable Loan Example 1:
Employer Z is eligible for a 150,000 Forgivable
Loan. Employer Z opens a new business with
15 employees, none of which currently live in
Coffeyville School District #445 (#445). After
one year, the company adds 5 employees, 3 of
which are #445 residents. However, one of the
original 15 now lives in #445 as well. This
allows a forgiveness equivalent to four #445
residents. Only 1 of the new employees would
not be eligible for the loan forgiveness credit.
Forgivable Loan Example 2:
After 5 years Employer Z is up to 30 employees.
Ten of which are #445 residents. For year 5 the
company would then get credit for 10 #445
residents.
Forgivable Loan Example:
$150,000 Loan, 15 Employees to start, 10 Year
Term, 0% Interest = Annual Payment of
$15,000 at $750/employee Forgiveness rate.
Loan
Year
New
Hires
#445
Residents
Total
Payment
1 1 1 14,250
2 10 8 8,250
3 1 0 8,250
4 0 -1 9,000
5 5 5 5,250
6 2 2 3,750
7 8 3 1500
8 3 0 1500
9 2 2 0
10 0 0 0
Total 32 20 $51,750
FUNDING
Incentives will be based on employee numbers
and residency of employees. Based on research
done by the Consulting firm Consumer Logic
out of Atlanta, Georgia each new job in
Coffeyville equates to $750 per year for 10 years
in additional sales tax revenues for the general
fund of the City of Coffeyville. Based on this
information, the City will offer a new or existing
company $7500 ($750 per year for 10 years) per
new employee that resides in the city limits of
Coffeyville.
APPLICATION/APPROVAL
PROCEDURE
To be eligible for this incentive offer,
companies must fill out Form A - Application
for City of Coffeyville Loan/Incentive Form,
found in the Appendix of this document or on
the City website at
www.coffeyville.com/index.aspx?nid=296
To speed up the process of the incentive
package, you can complete the first page of the
application and send it to the contact
information listed below. If you are seeking
state incentives, it is also recommended that you
fill out form B – Kansas Incentive Request Form
as well.
Staff will review the application and meet with
Cash Incentives
10
you to discuss any other incentives you may be
eligible for, as well as show you any facilities
that might help your business. Depending on
credit-worthiness and sales tax revenue history,
the incentive could be structured as an upfront
cash payment, an annual disbursement based on
sales tax revenues for that year, or a forgivable
loan based on new jobs created. Once the
application is approved, the process can move
very quickly to ensure that your project does not
wait on the City to proceed.
REPORTING REQUIREMENTS
For Entrepreneurial businesses, annual sales or
Employee reports are required to determine the
annual incentive payment. If a forgivable loan
is chosen as the incentive program best suited
for the project, annual job reports and employee
residency reports will be required to forgive any
payments.
SPECIAL PROGRAM REQUIREMENTS
As with any incentive or program through the
City of Coffeyville, all final funding decisions
must be approved by the City Commission.
CONTACT
City of Coffeyville
Trisha Purdon, Economic Development
11 E. 2nd Street, P.O. Box 1629
Coffeyville, KS 67337
Phone: (620)252-6171
Email: [email protected]
Redevelopment Projects
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Redevelopment Projects
Neighborhood Improvement District (NID)
Tax Increment Financing (TIF)
State Historic Rehabilitation Tax Credit
Brownfields Targeted Assessment
Downtown Redevelopment Program
Redevelopment Projects
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NEIGHBORHOOD REVITALIZATION DISTRICT
PURPOSE
The intent and purpose of this plan, also referred
to as a tax rebate, is to encourage the
rehabilitation of existing structures and the
construction of new structures.
AUTHORIZATION
K.S.A. 12-17,114 et seq. and Coffeyville City
Resolution No. R-04-61 passed on May 11,
2004.
ELIGIBLE AREAS
There are six Neighborhood Revitalization
Districts in Coffeyville, Downtown, Residential
areas 1-4, and a Commercial area. Below is a
table showing the rebate amounts properties in
these areas are eligible for.
Downtown Plan
Years 1—5 .................... 100%
Year 6 ............................. 80%
Year 7 ............................. 60%
Year 8 ............................. 40%
Year 9 ............................. 20%
Year 10 ........................... 10%
Residential Plan Area #1 & #4
Residential
Years 1—5 ....................100%
Years 6—10 ................... 50%
Commercial
Years 1—5 ..................... 50%
Years 6—10 ................... 25%
Residential Plan Area #2 and #3
Residential & Commercial
Years 1– 5 ...................... 50%
Years 6—10 ................... 25%
Redevelopment Projects
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Any property listed on the National or State
Historic Register is eligible for a 100% rebate in
any area. All Areas are indicated on the map on
the right.
ELIGIBLE APPLICANTS
Only properties located in the above districts
are eligible for this program.
ELIGIBILITY CRITERIA
• Only one tax rebate application per project
may be submitted. The rebate will be based
only upon the increased assessed value
attributed to the eligible improvement.
• An application for rebate must be filed
within sixty (60) days of the issuance of a
building permit.
• The assessed value increase will be
determined by the resulting classification of
the improvement. The minimum increase in
assessed value due to the eligible
improvement will be 5% for residential
property and 5% for commercial property as
determined by the Montgomery County
Appraiser. The assessed value increase will
be determined the first full year of eligibility
after completion and will be used throughout
the years of eligibility.
• This program is limited to real property.
Personal property taxes are not eligible for
rebate.
• Any property taxpayer that is delinquent on
any tax payment and/or special assessment
will not be eligible for any rebate. All
rebates will be terminated if the property
taxpayer becomes delinquent with the
payment of taxes on any property owned by
the taxpayer.
• The new, as well as the existing
improvements on the property must conform
to all other codes, rules, and regulations in
effect at the time the improvements are
made, and for the length of the rebate, or the
rebate may be terminated.
• Any remaining rebate available under this
Plan shall be payable to the owner of the
property or the person who is liable for
payment of the taxes on the revitalized
property, regardless of who actually made
the improvements.
APPLICATION/APPROVAL
PROCEDURE
1. Obtain Application for Tax Rebate from the
Building Inspector when obtaining a
building permit application.
2. File application with the Building Inspector
within 60 days following issuance of the
building permit along with a $25 application
fee check written to the Montgomery
County Appraiser.
3. An application for a rebate of property tax
increments will contain the following
information:
• Owner’s name, mailing address &
telephone number
• Address of property
• Legal description of property
• Parcel I.D. number
• Building permit number
• Existing & Proposed use of property
• Proposed improvement
• Estimated cost of improvements
• Date construction started
• Estimated date of completion
• Signature of Building Inspector
indicating project is eligible for tax
rebate
• Signature of Building Inspector
indicating construction meets all
applicable codes
• Signature of County Clerk indicating
taxes on property owned by applicant
are current
• Signature of County Appraiser
indicating project meets minimum
assessed valuation requirements
4. The Building Inspector will forward the
application to the Montgomery County
Appraiser’s Office for determination of the
existing assessed valuation of the property.
Redevelopment Projects
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5. The Building Inspector will monitor the
project to ensure that all applicable city
codes are met.
6. Upon completion of construction, the
Building Inspector will notify the County
Appraiser that the project is ready for
inspection.
7. Upon determination by the Appraiser’s
office that the improvement meets the
percentage test for rebate and by the County
Treasurer’s office that the taxes and
assessments on property owned by the
applicant are not delinquent, the Building
Inspector will certify that the project and
application does or does not meet the
requirements for a tax rebate and will notify
the applicant.
8. The tax rebate will be made to the property
owner within a thirty (30) day period
following the date of tax distribution by the
County.
CONTACT
City of Coffeyville
Trisha Purdon, Economic Development
11 E. 2nd Street
P.O. Box 1629
Coffeyville, KS 67337
Phone: (620) 252-6171
Fax: 620-252-6175
Email: [email protected]
Website: www.coffeyville.com
Redevelopment Projects
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TAX INCREMENT FINANCING (TIF)
PURPOSE
Tax Increment Financing (TIF) is a tool which
pledges future gains in taxes to finance
improvements which will result in those gains.
TIF is designed to channel funding toward
improvements in areas where
development/redevelopment may not otherwise
occur. The existing property and sales tax
revenue is “frozen” until the project generates
sufficient revenue to pay for redevelopment
costs agreed upon between the City and the
developer of the project. Under Kansas law,
these redevelopment costs may go toward public
infrastructure improvements, including road and
utility construction, as well as demolition of
existing structures, but may not go toward
private building construction.
AUTHORIZATION
K.S.A. 12-1770 et seq. And any amendments
thereto (The “Act”) and K.S.A. 12-17,110 prior
to July 1, 1992.
ELIGIBLE AREAS
In Kansas, a TIF project must be located within
a “redevelopment district” which may be
established by a city in (1) Blighted Areas; (2)
Conservation Areas; (3) Enterprise Zones; (4)
Major Tourism Areas; (5) Major Commercial
Entertainment and Tourism Areas; and (6)
Bioscience Development Areas.
HOW THE PROGRAM WORKS
When an area is developed or redeveloped, there
is an increase in the value of the property. The
increased site value and investment creates more
taxable property, which increases tax revenues.
The increased tax revenues are the “tax
increment.” TIFs pledge the future increased
revenue for repayment of eligible costs
associated with the improvements.
TIF does not result in increased property tax
rates or increased sales tax rates. Projects may
be funded by the use of special obligation bonds
or on a pay as you go basis.
ELIGIBILE USES
Permissible redevelopment project costs or
expenses include but are not limited to:
• Acquisition of property within the
redevelopment project area;
• Payment of relocation assistance;
• Site preparation, including utility
relocations;
• Sanitary and storm sewers and lift stations;
• Drainage conduits, channels, levees and
river walk canal facilities;
• Street grading, paving, graveling
macadamizing, curbing, guttering, and
surfacing;
• Street lighting fixtures, connection and
facilities;
• Underground gas, water, heating and
electrical services and connections located
within the public right-of-way;
• Drives and driveway approaches located
within the public right-of-way;
• Water mains and extensions;
• Plazas and arcades;
• Major multi-sport athletic complex;
• Museum facility;
• Parking facilities, including multilevel
parking facilities;
• Incubator project equipment;
• Intermodal public infrastructure;
• Landscaping and plantings, fountains,
shelters, benches, sculptures, lighting,
decorations and similar amenities; and
• All related expenses to redevelop and
finance the redevelopment project.
Redevelopment project costs shall not include
costs incurred in connection with the
construction of buildings or other structures to
be owned by or leased to a Developer, except for
multi-level parking facilities.
Redevelopment Projects
16
FUNDING
The City may use proceeds of special obligation
bonds or full faith and credit tax increment
bonds to finance the undertaking of a
redevelopment project. The maximum maturity
of any such special obligation bonds or full faith
and credit tax increment bonds shall be 20 years.
The City may also issue revenue bonds, or
private activity bonds to benefit a Developer
located within a redevelopment district.
Special Obligation Bonds:
The City may issue special obligation bonds to
finance permissible expenses of a
redevelopment project. Principle and interest on
such bonds may be payable:
1. From tax increments allocated to, and paid
into a special fund of the City;
2. From revenues of the City derived from or
held in connection with the undertaking and
carrying out of any redevelopment project;
3. From private sources, contributions, or other
financial assistance from the state or federal
government;
4. From revenue received by the City from any
transient guest or local sales and use taxes;
5. From the increased franchise fees and city
sales tax; or
6. From any combination of these methods.
Special obligation bonds are not general
obligations of the City, nor in any event shall
they give rise to a charge against its general
credit or taxing powers or be payable out of any
funds or properties other than those sources set
forth above. Should the annual increment fall
short of the amount necessary to pay the
principal and interest of the special obligation
bonds issued under this policy, the remaining
amount payable is the responsibility of the
applicant, not the City.
Full Faith and Credit Bonds
The City may also issue full faith and credit
bonds to finance a redevelopment project. These
bonds are payable, both as to principal and
interest:
1. From the revenue sources identified for
special obligation bonds; and
2. From a pledge of the City's full faith and
credit to use its ad valorem taxing authority
for repayment thereof in the event all other
authorized sources of revenue are not
sufficient.
Except in extraordinary circumstances in the
sole discretion of the Governing Body, the
proceeds of full faith and credit tax increment
bonds shall only be used to pay for public
improvements or public projects which would
otherwise be eligible to be paid for with the
proceeds of City general obligation bonds.
Reimbursement Authority
TIF can be used to reimburse a Developer for
eligible redevelopment project plan costs as
opposed to issuing bonds. Under this method,
the City may agree to reimburse the Developer
for eligible redevelopment project costs over a
period of time not to exceed twenty (20) years
from the date of redevelopment project plan
approval in accordance with the terms set forth
in the Redevelopment Agreement. The
reimbursement amount is paid solely from all or
a portion of the tax increment and the Developer
takes the risk that the portion of the increment
pledged for reimbursement will be insufficient
to retire the eligible redevelopment project
costs.
APPROVAL GUIDELINES
The general objectives of the City in granting
TIF for economic development are:
1. Promote, stimulate and develop the general
and economic welfare of the State of Kansas
and the City;
2. Promote the general welfare of residents
through assisting in the development,
redevelopment, and revitalization of central
business areas, blighted areas, conservation
areas, and environmentally contaminated
areas located within the City;
Redevelopment Projects
17
3. Create new and retain existing jobs; and
4. Expand the economic and tax base of the
City.
The City recognizes that a simple system of
determining the amount of TIF to be granted in
order to reach these objectives may not always
be equitable if applied uniformly to different
kinds of redevelopment project plans. As a
result, in determining the actual amount and
duration of TIF to be granted, the City shall
review each application on a case by case basis
and consider the factors and criteria set forth in
this Policy including where applicable, a
Feasibility Study, as required by state law, as
well as the amount and duration of previous TIF
projects supported by the City.
All TIF applications shall be considered in light
of the “but for” principle, i.e., TIF must make
such a difference in the decision of the
Applicant that the project would not be
economically feasible “but for” the availability
of TIF.
APPLICATION PROCEDURE
Applications for TIF should include the
following:
Legal description of the proposed
boundaries of the project area;
Map of the project plan area with
accompanying tax parcel ID information;
A project plan that identifies all the
proposed redevelopment project areas and
identifies all of the buildings, facilities and
other improvements that are proposed to be
constructed or improved in each
redevelopment project area;
If applicable, accompanied by a study from
qualified personnel providing the
information to establish blight or
conservation area findings as the basis for
establishing the redevelopment district area;
Information regarding expected capital
expenditures by the Applicant;
An itemization of development assistance
requested;
Summary of the proposed financing plan,
including sources and uses of funds;
A detailed description that of the proposed
buildings, facilities and other improvements
to be constructed in the project area,
including the estimated fair market and
assessed value of the improvements and the
estimated date in which construction of the
improvements will be commenced and
completed;
The proposed relocation plan if any
relocation will be required under the project
plan.
Applicable application fee and funding
agreement.
The applicants financial investment;
The property, sales and other tax and fee
revenue that may result from the project;
The credit worthiness and experience of the
applicant.
RECOMMENDED UTILIZATION
GUIDELINES
The amount of TIF will not exceed 15% of
total project costs, excluding the costs for the
addition or replacement of public
infrastructure. Favorable consideration will be
given to projects that:
Meet the City’s objectives outlined in the
Comprehensive Plan, Economic
Development Plan, or other area
development plans;
Are anticipated to serve as catalysts for
additional development or redevelopment
that meets the goals of the city;
Plans that have a payoff in 12 years or less;
Provide at least 15% of equity from the
developer;
Provide at least $1 Million in new real and
personal property;
Satisfy unmet retail or commercial demand;
Incorporate other financing mechanisms to
support the project where applicable.
Redevelopment Projects
18
CONTACT
City of Coffeyville
Trisha Purdon, Economic Development
11 E. 2nd Street
P.O. Box 1629
Coffeyville, KS 67337
Phone: (620) 252-6171
Fax: 620-252-6175
Email: [email protected]
Website: www.coffeyville.com
Montgomery County Action Council
Aaron Heckman, Executive Director
115 S. 6th St.
Independence, KS 67301
Phone: (620)331-3830
Email: [email protected]
Website: www.actioncouncil.com
Redevelopment Projects
19
STATE HISTORIC REHABILITATION TAX CREDIT
PURPOSE
Tax credit equity investments can be an
extremely valuable part of a historic or older
building rehabilitation financing plan. For profit
developers can use the subsidies from tax credits
as part of a “gap” financing strategy. In the case
of a nonprofit developer, such as a community
development corporation, the availability of tax
credit equity can help a nonprofit with
fundraising by showing prospective donors that
tax credit equity will reduce the amount of
charitable funds that have to be raised.
ELIGIBLE APPLICANTS
Buildings must be qualified historic structures.
Qualified buildings are those that have been
listed on the National Register of Historic
Places, the Register of Historic Kansas Places,
or have been deemed contributors to a National
or State Register Historic District.
ELIGIBILITY CRITERIA
• Building may be either income-producing or
non-income-producing. Private residences
do qualify for the State Tax Credit.
• Proposed work must follow a qualified
rehabilitation plan. Qualified projects are
those that have been reviewed and approved
by the State Historic Preservation Office
(SHPO) through the application process.
• Applications must be approved by the SHPO
before work begins.
• Project expenses must exceed $5,000. You
may combine smaller projects in order to
exceed the minimum requirement.
• All work must meet the Secretary of the
Interior's Standards for Rehabilitation. This
will be determined by the SHPO staff during
the application process.
FUNDING INFORMATION
• State Tax Credits may be carried forward for
10 years if you are unable to use all of your
credits in one year.
• State Tax Credits may also be transferable to
other taxpayers. Please contact the SHPO
for more information
APPLICATION/APPROVAL
PROCEDURE
Applicants must complete both part 1 and part 2
of the application process to be eligible for the
tax
1. Qualified Historic Structure Form Required if your building is located in a
National Register or State Register Historic
District. The form will be reviewed to verify
that your building is a contributor to the
character of the historic district. Must
include photographs with form.
2. Qualified Rehabilitation Certification
Form: Required for all applicants to certify
that the proposed project will meet the
Secretary of the Interior's Standards for
Rehabilitation. The applicant should outline
the building's existing condition and all
proposed work. Photographs showing all
areas of proposed changes are required. If
you are proposing major changes or you are
using an architect, additional materials, such
as drawings, may be required. The SHPO
staff will review the application and
materials to certify that all proposed work
meets standards. The SHPO will advise
applicants and provide technical assistance
when needed. Work may begin on the
proposed project only after this application
has been approved by the SHPO.
3. Application Processing Fee An application-processing fee is required.
Fees are based on the estimated dollar
amount of qualified rehabilitation
expenditures. Please submit the appropriate
fee as noted below with your application.
Qualified Expenditures Fee
$5,000 - $25,000 $200
Redevelopment Projects
20
$25,001 - $50,000 $350
$50,001 - $100,000 $500
$100,001 - $500,000 $900
$500,001 - $1,000,000 $1,500
Over $1,000,000 $2,000
4. Rehabilitation Completion Certification
This form must be submitted when all work
has been completed. Photographs of the
finished work must accompany the
submission. Upon review and approval by the
SHPO, applicants will receive a certificate
verifying that they may claim 25 percent of
their qualified expenses as credit toward their
Kansas state income, privilege, or premiums
taxes. Qualified expenses are generally those
associated with the physical structure of the
building, but other soft costs can be applied
as well.
RECOMMENDED UTILIZATION
GUIDELINES
The City of Coffeyville encourages eligible
properties to seek listing on the National
Register of Historic Places, and will support
any project that builds on the historic character
of applicable buildings rather than detracting
from them. When available, staff will provide
technical assistance to interested applicants to
help ensure the historical assets of the
community.
CONTACT
City of Coffeyville
Trisha Purdon, Economic Development
11 E. 2nd Street
P.O. Box 1629
Coffeyville, KS 67337
Phone: (620) 252-6171
Fax: (620) 252-6175
Email: [email protected]
Website: www.coffeyville.com
Kansas State Historical Preservation Office
6425 SW 6th Avenue
Topeka, KS 66615
Phone: (785) 272-8681 ext. 240
Email: [email protected]
Website: www.kshs.org
Redevelopment Projects
21
BROWNFIELDS TARGETED ASSESSMENT
PURPOSE
A Brownfields site is real property of which the
expansion, redevelopment or reuse may be
complicated by contamination or perceived
contamination on the property. Through this
program, KDHE can provide Brownfields
Targeted Assessments (BTA) to eligible
applicants on projects that benefit community
need or job creation, and provide technical
assistance to municipalities and the public
concerning Brownfields issues at no cost.
AUTHORIZATION
This program was initiated through approval of
a federal grant from the EPA.
ELIGIBLE APPLICANTS
The Brownfields Program typically works with
local municipalities, not-for-profit, and quasi-
government entities to assess properties.
However, a privately owned property may be
eligible for funding if the applicant is one of the
above-mentioned entities, or if one of the
entities writes a letter of support for the project.
ELIGIBILITY CRITERIA
The KDHE Brownfields Program targets
projects that have community benefits and
support in terms of job creation, economic
dependence, green initiatives, or some other
community need. Some examples include
libraries, community buildings, fire stations,
main street storefronts, commercial real estate,
parks and recreational paths, all of which are
key elements to rural community development
or small start-up businesses. The program
encourages the redevelopment and reuse of
potentially environmentally contaminated
properties.
PROGRAM BENEFITS/ELIGIBLE USES
In addition to performing Brownfields
assessments on eligible properties, KDHE’s
Brownfields Program can provide other
assistance such as:
• Technical assistance related to federal
competitive grants;
• Determining appropriate environmental
programs for specific properties;
• Cleanup options;
• Conducting Brownfields workshops across
the state; and,
• Individual assistance for communities to
discuss specific Brownfields redevelopment
concerns.
APPLICATION/APPROVAL
PROCEDURE
A KDHE Brownfields Targeted Assessment
Application can be found at:
http://www.kdheks.gov/brownfields/index.html
CONTACT
City of Coffeyville
Trisha Purdon, Economic Development
11 E. 2nd Street
P.O. Box 1629
Coffeyville, KS 67337
Phone: (620) 252-6171
Fax: (620) 252-6175
Email: [email protected]
Website: www.coffeyville.com
Kansas Department of Health &
Environment
Bureau of Environmental Remediation
Maggie Weiser, Brownfields Coordinator
1000 S.W. Jackson St., Suite 410
Topeka, KS 66612-1367
Phone: (785) 296-5519
Fax: (785) 296-7030
Email: [email protected]
Redevelopment Projects
22
DOWNTOWN REDEVELOPMENT PROGRAM
PURPOSE
The purpose of the Kansas Downtown
Redevelopment Act is to promote, stimulate and
develop the general and economic welfare of the
state of Kansas, its rural and low income
communities, by encouraging rehabilitation and
use of real property located in downtown areas
that have become vacant or minimally utilized
by allowing the rebate of real property taxes to
properties within a designated area that have
undergone approved improvements.
AUTHORIZATION
The Downtown Redevelopment Act (K.S.A. 12-
17), passed by the Kansas Legislature in 2004
and implemented by Kansas Administrative
Regulations (K.A.R. 110-11) in 2005,
establishes the designation of downtown
development areas in rural and low income
communities with a population of under 50,000.
ELIGIBLE AREAS
Eligible projects must take place in a Kansas
community in rural and low income areas with
a population of under 50,000.
ELIGIBLE APPLICANTS
The governing body of a city proposing to
establish a downtown redevelopment area shall
make written application to the Secretary of
Commerce.
ELIGIBILITY CRITERIA
The approval of the application will be based on
the following criteria:
• The city has a population of less than 50,000
or the proposed redevelopment area
qualifies as a distressed community.
• The proposed redevelopment area is located
in a well-defined core commercial district of
the city.
• If the structures located within the proposed
redevelopment area have a vacancy rate that
exceeds 15% based on square footage
• The average appraised valuation of the
properties located within the proposed
redevelopment area has not increased by
more than 15% in the past 10 years.
Once a city has been approved and has designed
its application process, the owner of real
property located within the development area
should submit a written application to the local
governing body to request downtown
redevelopment area tax benefits. After review,
the governing body shall either approve or deny
the application based on the following criteria:
• The applicant has made within a twelve (12)
month period, an investment in
improvements to the property or trade
fixtures located therein, the value of which
is equivalent to or exceeds 25% of the
appraised value of the property as
determined by the county appraiser, for the
immediately preceding tax year; and
• The real property that is the subject of the
application is in full compliance with
city/county ordinances and resolutions.
Favorable consideration will be given to
projects that meet the City’s objectives
outlines in the Comprehensive Plan or
Economic Development Plan;
• Are in conformance with the Downtown
Redevelopment plan;
• Are anticipated to serve as catalysts for
additional development or redevelopment
that meets the goals of the City.
• Satisfy unmet retail and non-retail
commercial demand.
• Developer has at least 15% equity in the
project;
PROGRAM BENEFITS/ELIGIBLE USES Property that has been approved for downtown
redevelopment tax benefits shall be assessed and
taxed for real property tax purposes in the same
Redevelopment Projects
23
manner that the property would be assesses and
taxed as if it had not been approved for the tax
benefits. The owner shall receive the tax
increment in the form of a rebate of:
1. 100% each year in years one through five.
2. 80% in year six.
3. 60% in year seven.
4. 40% in year eight.
5. 20% in year nine.
6. No rebate will be paid in year 10 or later.
CONTACT
City of Coffeyville
Trisha Purdon, Economic Development
11 E. 2nd Street
P.O. Box 1629
Coffeyville, KS 67337
Phone: (620) 252-6171
Fax: (620) 252-6175
Email: [email protected]
Website: www.coffeyville.com
Kansas Department of Commerce
Business & Community Development
1000 S.W. Jackson Street, Suite 100
Topeka, Kansas 66612-1354
Phone: (785) 296-3485
TTY (Hearing Impaired): (785) 296-3487
Fax: (785) 296-3490
E-mail: [email protected]
www.kansascommerce.com
Infrastructure Development
24
Infrastructure Development
Community Improvement District (CID)
Transportation Development District (TDD)
KDOT Economic Development Program
KDOT State Rail Service Improvement Fund
KDOT Kansas Airport Improvement Program
KDOT Transportation Economic Development Loan Program
City Connecting Link Resurfacing Program (KLINK)
Geometric Improvement Program (GI)
Infrastructure Development
25
COMMUNITY IMPROVEMENT DISTRICT (CID)
PURPOSE
A CID is designed to finance public or private
facilities, improvements or services for an area
determined in partnership between the City and
landowners. In many ways, CID’s are similar to
home associations - providing shared
improvements and services paid with revenue
generated from a sales tax and/or property
assessment initiated by the owners within the
District.
AUTHORIZATION
CID: K.S.A. 12-6a26 through K.S.A. 12-6a36,
inclusive (the “CID Act”).
TYPES OF PROJECTS
Within its boundaries, a CID may fund all
phases of the redevelopment/development
process associated with the following
improvements:
Buildings
Transportation improvements
Utility Improvements
Parking Facilities
Streetscape Improvements Including
Lighting
Parks
Mass Transit Facilities
Cultural Amenities
Lakes, Dams, & Ports
OTHER ELIGIBLE USE OF FUNDS
CID’s may also directly provide or contract for
on-going services including:
Recreation & Entertainment
Child Care
Operation of Transit and Parking Facilities
Security
Cleaning & Maintenance
Tourism Promotion
Economic Development
Business Training
In addition to the improvements and services
listed on the left, permitted costs include:
preparation of reports, plans and specifications;
preparation and publication of official
documents; fees and expenses of consultants;
interest accrued on money borrowed during
construction; and establishing bond reserve
funds. The City may also charge an
administrative fee of up to 5% of the total
project cost.
ELIGIBLE AREAS
All CID projects must be located within the
physical boundaries of the district. A CID does
not have to contain all properties that benefit
from the projects. Properties within the CID
boundaries do not have to benefit equally from
the projects and a property owner’s financial
participation in the project cost is not required to
be in proportion to the financial benefit
received.
FUNDING
CIDs may be financed through one or more of
the following:
Property tax special assessments;
A CID Sales Tax
Any other funds appropriated by the City or
County
Property tax special assessments are
administered under the same laws governing
special improvement districts (K.S.A. 12-6a01);
except that no assessments may be levied
against the city or county at large. Additional tax
law analysis may be necessary if special
assessments are utilized and not all benefited
properties are within the district.
A Community Improvement District sales tax is
in addition to any current city, county, state, and
special purpose district sales taxes. CID sales
taxes may be imposed in increments of .10% or
.25% up to a maximum of 2%. The state collects
and distributes CID sales taxes in the same
Infrastructure Development
26
manner as all other products and services
covered under the Kansas retailer's sales tax act.
The State Treasurer is authorized to retain 2% of
the CID sales taxes collected to defray the
State's administrative expenses. CID sales taxes
are received quarterly by municipalities and
must be deposited into a special purpose fund.
Initiation of a CID sales tax may begin only on
the first day of January, April, July or October
and the Department of Revenue must be given
90 days’ notice. The
Department of Revenue is authorized to release
to the bond trustee, escrow agent or paying
agent the amount of sales tax paid by each
retailer within the Community Improvement
District with the restriction that such
information be kept confidential.
The maximum term of a CID special assessment
or sales tax is 22 years. CID projects may be
funded on a pay-as-you-go basis or through the
issuance of bonds. If bonds are utilized, the type
of bond, special obligation or full faith and
credit, is determined by the proposed revenue
source and type of petition submitted by the
property owners.
Special obligation bonds are payable solely
from CID project revenues. As such, they are
not secured by the municipality's general credit
or taxing powers. CID special obligation bonds
are not subject to the state statutory debt limit.
Full faith and credit bonds are payable, first
from CID project revenues, and second from a
pledge of the municipality's ad valorem taxing
authority, in the event all other authorized
sources of revenue are not sufficient. CID full
faith and credit bonds may be secured by both a
special assessment and a sales tax. In such a
case, the yearly special assessment may be
reduced by sales tax revenue available to pay
debt service. The amount of full faith and credit
CID bonds that exceeds 3% of the municipality's
assessed valuation applies toward the statutory
debt limit.
APPLICATION/APPROVAL
PROCEDURE
No Public Hearing
(100% agreement to special assessments
without full faith and credit bonds)
Petition signed by owners of ALL land
within the district. Petition contains:
o General nature of CID project
o Estimated Cost
o Proposed method of financing
o Amount and methods of levying special
assessments;
o Map or boundary description;
o Legal description
No notice or public hearing required
Governing body adopts by simple majority
an ordinance or resolution authorizing the
district and district financing.
Publication of ordinance/resolution
Ordinance/resolution recorded with County
register of deeds.
Public Hearing Required
(Any of the following: Less than 100%
agreement to special assessments, sales tax, full
faith credit bonds)
Petition submitted signed by owners of 1.
More than 55% of the land area; and 2. More
than 55% of the assessed value within the
district. Petition contains:
o General nature of CID project
o Estimated Cost
o Proposed method of financing
o Amount and methods of levying special
assessments;
o Map or boundary description;
o Legal description
Governing body adopts a resolution calling
for public hearing. Notice published twice
in the newspaper and sent via certified mail
to all property owners within the proposed
district.
Public hearing held
Governing body adopts by simple majority
Infrastructure Development
27
an ordinance or resolution authorizing the
district and district financing.
Publication of ordinance/resolution
Ordinance/resolution recorded with county
register of deeds.
RECOMMENDED UTILIZATION
GUIDELINES
The decision to establish a CID is within the sole
discretion of the City Commission. In
determining whether or not to approve a petition
to establish a CID, the Governing Body will
evaluate whether or not creation of a CID is in
the City’s best interest, by considering one or
more of the following criteria:
Promotes and supports efforts to develop or
redevelop commercial sites to provide for
reinvestment in our community;
Stimulates quality development to enhance
the City’s economic base;
Attracts and promotes mixed use
development;
Allows for the construction of infrastructure
including the construction of infrastructure
beyond what the City would require or
otherwise build;
The projects will be located in an area that
has been targeted by the Governing Body for
economic development or redevelopment;
or has specific site constraints making
development more difficult or costly;
The impact on other infrastructure systems,
to include the cost of core system extensions
to areas not adjacent to existing systems; the
financial risk to the City and any other
government units of the financing proposal,
to include exposure of the general property
tax levy or credit rating;
Recommendation of the City Finance Team;
Compliance with uses anticipated in the
Comprehensive Plan
High degree of architectural design and site
layout
Design of infrastructure to meet public
and/or private standards.
Or whatever other factors the City
Commission deems relevant to its decision.
Staff will provide technical and logistical
support in the development and implementation
of required plans, petitions, and development
agreements.
CONTACT
City of Coffeyville
Trisha Purdon, Economic Development
11 E. 2nd Street
P.O. Box 1629
Coffeyville, KS 67337
Phone: (620) 252-6171
Fax: 620-252-6175
Email: [email protected]
Website: www.coffeyville.com
Montgomery County Action Council
Aaron Heckman
115 S. 6th St.
Independence, KS 67301
Phone: 620-331-3830
Fax: 620-331-3834
Email: [email protected]
Website: www.actioncouncil.com
Infrastructure Development
28
TRANSPORTATION DEVELOPMENT DISTRICT (TDD)
PURPOSE
A Transportation Development District or TDD
is designed to finance public or private
transportation improvements in partnership
between the City and landowners. The
improvements are paid for by revenue generated
from a sales tax and/or property assessment
initiated by the owners within the District. The
proper use of a TDD can promote, stimulate and
develop the general and economic welfare and
quality of life in the City of Coffeyville.
AUTHORIZATION
K.S.A. 12-17,140 et seq. and any amendments
thereto (the “TDD Act”)
HOW THE PROGRAM WORKS
A TDD may be created to act as the entity
responsible for developing, improving,
maintaining, or operating one or more “projects
relative to the transportation needs of the area in
which the District is located.
TYPES OF PROJECTS
TDD’s may undertake a variety of
transportation-related projects to improve,
construct, reconstruct, maintain, restore,
replace, renew, repair, install, furnish, equip or
extend any bridge, street, road, highway access
road, interchange, intersection, signing,
signalization, parking lot, bus stop, bus station,
garage, terminal, hangar, shelter, rest area, dock,
wharf, lake or river port, airport, railroad, light
rail or other mass transit facility or any other
transportation related project or infrastructure
including but not limited to utility relocation,
sanitary and storm sewers and lift stations,
drainage conduits, channels and levees, street
light fixtures, connection and facilities,
underground gas, water, heating and electrical
services and connections located within or
without the public right-of-way, sidewalks and
pedestrian underpasses or overpasses, and water
main and extensions.
RECOMMENDED UTILIZATION
GUIDELINES
The decision to establish a TDD is within the
sole discretion of the City Commission. In
determining whether or not to approve a petition
to establish a TDD, the Governing Body will
evaluate whether or not creation of a TDD is in
the City’s best interest, by considering one or
more of the following criteria:
Promotes and supports efforts to develop or
redevelop commercial sites to provide for
reinvestment in our community;
Stimulates quality development to enhance
the City’s economic base;
Attracts and promotes mixed use
development;
Allows for the construction of infrastructure
including the construction of infrastructure
beyond what the City would require or
otherwise build;
The projects will be located in an area that
has been targeted by the Governing Body for
economic development or redevelopment;
or has specific site constraints making
development more difficult or costly;
The impact on other infrastructure systems,
to include the cost of core system extensions
to areas not adjacent to existing systems; the
financial risk to the City and any other
government units of the financing proposal,
to include exposure of the general property
tax levy or credit rating;
Recommendation of the City Finance Team;
Compliance with uses anticipated in the
Comprehensive Plan
High degree of architectural design and site
layout
Design of infrastructure to meet public
and/or private standards.
Or whatever other factors the City Commission
deems relevant to its decision.
Staff will provide technical and logistical
Infrastructure Development
29
support in the development and implementation
of required plans, petitions, and development
agreements.
FUNDING
To pay for the costs of such transportation
projects, the Governing Body may impose a
TDD sales tax on the selling of tangible personal
property at retail or rendering or furnishing
services within Transportation Districts in any
increment of .10% or .25% not to exceed 1.0%
and/or the levy of special assessments upon
property within such transportation districts and
to issue revenue bonds payable from such sales
taxes and/or special assessments.
APPLICATION/APPROVAL
PROCEDURE
A valid petition must be submitted with
signatures of 100% of the property owners of all
the land area within the proposed district, for
either a special assessment TDD or a sales tax
TDD. A public hearing is required for a sales
tax TDD, but is not required for an assessment-
only TDD. A TDD may be created by request
petition filed with the City Clerk of the City of
Coffeyville. There are specific rules that
provide filing procedures and content
requirements of TDD creating petitions.
The TDD boundaries and the method of
financing the project shall not require that all
property that is benefited by the project, whether
the benefited property is within or without the
TDD, be included in the TDD or be subject to
an assessment or the TDD sales tax.
The petition must contain a description of the
following:
The general nature of the Transportation
Project;
The proposed uses of all Transportation
District funds;
The maximum cost of the Transportation
Project supplemented by a preliminary
budget describing each element of the
Transportation Project proposed to be paid
for by Transportation District sales tax or
assessments;
The proposed method of financing the
Transportation Project;
The proposed method of assessment, if any;
The proposed amount of any Transportation
District sales tax;
A map and legal description of the proposed
Transportation District.
The City reserves the right to request any
additional information to supplement the
Petition, including those items described above,
prior to consideration by the City Commission.
PUBLIC HEARING PROCEDURE
After review of a completed Petition by the
TDD Committee, and prior to creating any
Transportation District (except a Transportation
District financed only by special assessments,
for which no public hearing is required) the
Governing Body shall, by resolution, direct and
order a public hearing on the advisability of
creating such Transportation District and the
construction of such Transportation Projects
therein, and to give notice of the hearing by
publication at least once each week for two
consecutive weeks in the Coffeyville Journal
and by certified mail to all property owners
within the proposed Transportation District, the
second publication to be at least seven days prior
to the hearing and such certified mail sent at
least ten days prior to such hearing. The notice
of public hearing shall contain the following
information:
The time and place of the hearing;
The general nature of the proposed
Transportation Project;
The maximum cost of the proposed
Transportation Project;
The proposed method of financing the costs
of the Transportation Project;
The proposed method of assessment, if any;
The proposed amount of the Transportation
District sales tax; and
Infrastructure Development
30
A map and legal description of the proposed
Transportation District.
After the Public Hearing is conducted on the
proposed Transportation District, the City
Commission shall determine the advisability of
creating a Transportation District setting forth
the boundaries thereof, authorizing the proposed
Transportation Projects, approving the TDD
sales tax, imposing any special assessments and
approving the method of financing the same.
Such determinations will be made by adoption
of an ordinance.
CONTACT
City of Coffeyville
Trisha Purdon, Economic Development
11 E. 2nd Street
P.O. Box 1629
Coffeyville, KS 67337
Phone: (620) 252-6171
Fax: 620-252-6175
Email: [email protected]
Website: www.coffeyville.com
Montgomery County Action Council
Aaron Heckman
115 S. 6th St.
Independence, KS 67301
Phone: 620-331-3830
Fax: 620-331-3834
Email: [email protected]
Website: www.actioncouncil.com
Infrastructure Development
31
KDOT ECONOMIC DEVELOPMENT PROGRAM
PURPOSE
Create net new jobs and capital investment in
the State by using transportation investments to
recruit new businesses and encourage growth of
existing businesses.
ELIGIBLE PROJECTS
Any transportation project that can be shown to
support job growth or capital investment in the
State are eligible. All modes are eligible,
including road projects on and off the state-
system, rail projects, airport improvements and
public transit investments. Typical projects
include access roads, turning lanes, and rail
spurs.
ELIGIBLE APPLICANTS
Local Governments, often in partnership with a
private business
ELIGIBILITY CRITERIA
Must address a transportation problem such
as enhancing safety, improving access or
mobility, or relieving congestion
Must be non-speculative, meaning the
program is not intended to fund
improvements merely for future recruitment
of businesses
Other basic infrastructure must be in place
or eminent, such as water and other utilities
Projects cannot just transfer business from
one part of the state to another
Must have the support of local leaders such
as elected officials and the chamber of
commerce
FUNDING LIMITS
Statewide funding is budgeted at $10 Million
annually in reimbursement grants for this
program. A 25% minimum local match is
generally required, although this is negotiable.
APPROVAL PROCEDURE
If a project’s approval is critical to recruit a new
business to the State, a decision will be made
within 45 days. For projects that are not time-
sensitive, projects will be pooled and selected
annually as funding is available.
APPLICATION REQUIREMENTS
If you are new to the program, it is strongly
recommended that you begin with the General
Local Opportunities Application, available at:
http://www.ksdot.org/tworks/ecodevo/downloa
ds/genapp2011.docx.
The Economic Development application can be
found at:
http://www.ksdot.org/tworks/ecodevo/downloa
ds/edapp2011.docx.
CONTACT
Montgomery County Action Council
Aaron Heckman
115 S. 6th St.
Independence, KS 67301
Phone: 620-331-3830
Fax: 620-331-3834
Email: [email protected]
Website: www.actioncouncil.com
Kansas Department of Transportation
Pete Van Sickle, Program Manager
Phone: (785) 296-3273
Email: [email protected]
Or
Michael Moriarty
KDOT Economic Development Coordinator
Phone: (785) 296-7960
Infrastructure Development
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KDOT STATE RAIL SERVICE IMPROVEMENT FUND
PURPOSE
Improve rail access for businesses and preserve
the condition of the state’s short line rail
network
ELIGIBLE APPLICANTS
Local Governments, short line railroads, port
authorities and shippers
PROGRAM BENEFITS/ELIGIBLE USES
Projects that improve the condition or expand
the capacity of the state’s short line railroads and
projects that can be used to recruit or expand
business in the state by providing better access
to the state’s rail network. Typical projects
include rail rehabilitation and reconstruction
projects, rail spurs, sidings and extensions
FUNDING LIMITS
Statewide funding is budgeted at $5 Million
annually in a combination of loans and
reimbursements grants. Local match will
generally be 30%. Other locally proposed match
amounts could be considered depending on
project specifics.
APPROVAL PROCEDURE
If a project’s approval is critical to recruit a new
business to the state, a decision will be made
within 45 days. For projects that are not time-
sensitive, projects will be pooled and selected
annually as funding is available.
APPLICATION PROCESS
It is strongly recommended that you begin with
the General Local Partnership Opportunities
Application, particularly if you are unfamiliar
with the program. The application is available
at:
http://www.ksdot.org/tworks/ecodevo/downloa
ds/genapp2011.docx.
If the project directly relates to creating jobs and
capital investment, applicants should submit the
Economic Development Program application,
available at:
http://www.ksdot.org/tworks/ecodevo/downloa
ds/edapp2011.docx.
For preservation and expansion projects,
applicants should submit the State Service
Improvement Fund application available at:
http://www.ksdot.org/tworks/ecodevo/downloa
ds/railapp2011.docx
SPECIAL PROGRAM REQUIREMENTS
If applicant is a local government, shipper or
port authority a Memorandum of Understanding
with the serving railroad to provide service and
car supply is required. Projects must
demonstrate a cost-benefit ratio of one or more.
CONTACT
Montgomery County Action Council
Aaron Heckman
115 S. 6th St.
Independence, KS 67301
Phone: 620-331-3830
Fax: 620-331-3834
Email: [email protected]
Website: www.actioncouncil.com
Kansas Department of Transportation
John Maddox, Program Manager
Phone: (785) 296-3228
Email: [email protected]
Or
Alicia Johnson-Turner
KDOT Economic Development Coordinator
Phone: (785) 296-7960
Infrastructure Development
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KDOT KANSAS AIRPORT IMPROVEMENT PROGRAM
PURPOSE
Improve and maintain the smaller airports
across the state in order to increase access to air
travel and air ambulance and to enhance airport
and community economic development appeal.
ELIGIBLE APPLICANTS
All public-use airports in Kansas except those
classified as Primary airports.
ELIGIBLE PROJECTS
Projects that improve the condition or
modernize the state’s public use airports, and
projects that can be used to recruit or expand
business in the state by providing better air
access. Typical projects include runway
rehabilitation, runway extensions, and airfield
equipment upgrades.
FUNDING
Statewide funding is budgeted at $5 Million
annually in reimbursement grants. State
participation is limited to $800,000 for most
projects. Exceptions include full-depth
reconstruction of an existing runway, which is
eligible for a maximum of $1.2 million, and new
runway construction, which is capped at $1.6
million.
A match is required, and it varies by size of
community and type of airport. KDOT will
participate in the cost of construction and
construction engineering at a rate not to exceed:
90% for sponsors with a population of less
than 3,000 and for privately-owned public-
use airports
75% for sponsors with a population between
3,000 and 10,000
50% for sponsors with a population greater
than 10,000
95% for planning and design
APPROVAL PROCEDURE
If a project’s approval is urgent, particularly if it
is critical to recruit a new business to the state, a
decision will be made within 45 days. For
projects that are not time-sensitive, projects will
be pooled and selected annually as funding is
available.
APPLICATION REQUIREMENTS
It is recommended that you begin with the
General Local Partnership Opportunities
Application. The application is available at:
www.ksdot.org/tworks/ecodevo/downloads/gen
app2011.docx.
If the project directly relates to creating jobs and
capital investment, applicants should submit the
Economic Development Program application,
available at:
http://www.ksdot.org/tworks/ecodevo/downloa
ds/edapp2011.docx.
For runway preservation and extension projects,
and modernization projects, applicants should
submit the State Service Improvement Fund
application available at:
http://www.ksdot.org/tworks/ecodevo/downloa
ds/airapp2011.docx.
CONTACT
City of Coffeyville
Trisha Purdon, Economic Development
11 E. 2nd Street, P.O. Box 1629
Coffeyville, KS 67337
Phone: (620) 252-6171
Email: [email protected]
Website: www.coffeyville.com
Kansas Department of Transportation
George Laliberte, Program Manager
Phone: (785) 296-7499
Email: [email protected]
OR Alicia Johnson-Turner
KDOT Economic Development Coordinator
Phone: (785) 296-7960
Email: [email protected]
Infrastructure Development
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CITY CONNECTING LINK RESURFACING PROGRAM (KLINK)
PURPOSE
The KLINK program provides reimbursable
grants to local governments for the purposes of
maintaining state highways that pass through the
city limits of a community. KLINK projects are
important to communities statewide as it
provides funding to address roadway surfacing
needs on city connecting links of the State
Highway System. Projects range in scope from
surface replacement and overlay to minor
patching and joint repair.
ELIGIBLE AREAS
KLINK funding is limited to City roadways
that also serve as connecting links to the State
Highway system.
ELIGIBLE APPLICANTS
Local Governments are eligible to apply.
PROGRAM BENEFITS/ELIGIBLE USES
This local partnership program between the
City and KDOT is for the connecting link
highway segments maintained by the City.
This program is intended to improve the road
surface ride qualities of Kansas communities.
FUNDING LIMITS
Through the Local Partnership Program, the
state’s participation in the cost of the project is
75 percent for cities with a population of less
than 10,000 or 50 percent for cities with a
population of 10,000 or greater, up to a
maximum of $200,000.
APPLICATION PROCEDURE
To apply for KLINK funding, visit the Kansas
Department of Transportation website at:
http://www.ksdot.org/tworks/ecodevo/program
s.html
CONTACT
City of Coffeyville
Trisha Purdon, Economic Development
11 E. 2nd Street, P.O. Box 1629
Coffeyville, KS 67337
Phone: (620) 252-6171
Email: [email protected]
Website: www.coffeyville.com
Infrastructure Development
35
GEOMETRIC IMPROVEMENT PROGRAM (GI)
PURPOSE
For the Geometric Improvement Program, the
Kansas Department of Transportation (KDOT)
administers a local partnership program for
highway construction that is intended to
improve geometric deficiencies on city
connecting links. A “connecting link” is a state
highway within the corporate limits of a city.
This particular program is called Geometric
Improvements. Approved funding must be
matched by the City at a ratio of 80/20
State/City to a maximum contribution by the
State of $900,000.
ELIGIBLE AREAS
KLINK funding is limited to City roadways that
also serve as connecting links to the State
Highway system.
ELIGIBLE APPLICANTS
Local Governments are eligible to apply.
PROGRAM BENEFITS/ELIGIBLE USES
This local partnership program between the City
and KDOT is for the connecting link highway
segments maintained by the City. This program
is intended to improve the road surface ride
qualities of Kansas communities.
FUNDING LIMITS
The maximum amount the State of Kansas will
contribute per project is $900,000. Each project
must be matched by the City for the State of
Kansas to pay 80% of the project costs, with the
City matching these costs by paying 20% of the
total project cost.
APPLICATION/APPROVAL
PROCEDURE
Geometric improvements should be planned out
years in advance of the project. Each of these
plans should be in the City’s Capital
Improvement Plan, and should be approved by
the City Commission before an application is
submitted to the State of Kansas Department of
Transportation.
The application for the Geometric Improvement
program is available here:
https://www.ksdot.org/Assets/wwwksdotorg/bu
reaus/burlocalproj/BLPDocuments/1330_GI_A
PP.pdf
CONTACT
City of Coffeyville
Trisha Purdon, Economic Development
11 E. 2nd Street, P.O. Box 1629
Coffeyville, KS 67337
Phone: (620) 252-6171
Email: [email protected]
Website: www.coffeyville.com
Kansas Department of Transportation
Bureau of Local Projects
Eisenhower State Office Building
700 SW Harrison, 10th Floor
Topeka, KS 66603-3745
Phone: (785) 296-3861
Email: [email protected]
Incentive Programs for Job Creation & Capital Projects
36
Incentive Programs for Job Creation & Capital Projects
Rural Opportunity Zone (ROZ)
Local Employee Inducement Program
High Performance Incentive Program (HPIP)
Promoting Employment Across Kansas (PEAK)
Machinery & Equipment Expense Deduction
Sales and Property Tax Exemptions
Other State Tax Incentives and Business Initiatives
Incentive Programs for Job Creation & Capital Projects
37
RURAL OPPORTUNITY ZONE (ROZ)
PURPOSE
Montgomery County is a Rural Opportunity
Zone as of July 1, 2014. This program
authorizes the State of Kansas and Montgomery
County to offer one or both of the following
financial incentives to new full-time residents:
• Kansas income tax waivers for tax years
2015 & 2016
• Student loan repayment up to $15,000
ELIGIBLE AREAS
77 Counties in Kansas, including Montgomery
County.
ELIGIBLE APPLICANTS
To be eligible for Kansas income tax waivers,
individuals must have:
• Established residency in a ROZ county on or
after July 1, 2014
• Lived outside Kansas for five or more years
immediately prior to establishing residency
in a ROZ county
• Earned less than $10,000 in Kansas Source
Income in each of the five years
immediately prior to establishing residency
in a ROZ county
To be eligible for student loan repayments,
individuals must:
• Establish residency in Montgomery County
on or after July 1, 2014
• Hold an associate's, bachelor's or post-
graduate degree
• Have an outstanding student loan balance
PROGRAM BENEFITS/ELIGIBLE USES
This program provides financial tax incentives
for employees who move to Montgomery
County from out of state, and/or moves to
Montgomery County after completing a
minimum of an associate’s degree at a public or
private educational institution. This is an
additional benefit to employers, as this can be
used as a recruiting and retention tool for new
and existing employees that do not currently live
in Montgomery County.
FUNDING LIMITS
There is a limit to the number of applicants that
will be approved each year. It is important to
contact MCAC, the City of Coffeyville, or
Montgomery County to start the process for
approval. However, an employer can sponsor a
ROZ applicant, which will waive the
requirement for first-come-first-served basis for
the State and the County.
APPLICATION/APPROVAL
PROCEDURE
All interested applicants must contact the
Montgomery County Action Council, or Chris
Harris, Program Manager of the Kansas
Department of Commerce at the contact
information listed below.
For an employer sponsored ROZ participant,
the employer would need to submit an
application via:
http://www.kansascommerce.com/index.aspx?
NID=697
CONTACT
Montgomery County Action Council
Aaron Heckman, Executive Director
115 S. 6th St.
Independence, KS 67301
Phone: (620)331-3830
Email:[email protected]
Kansas Department of Commerce
Chris Harris, Program Manager
Phone: (785) 296-6815
Email: [email protected]
Incentive Programs for Job Creation & Capital Projects
38
LOCAL EMPLOYEE INDUCEMENT PROGRAM
PURPOSE
The purpose of this program is to provide a
guideline for current and future businesses when
hiring and recruiting employees to work in a
Coffeyville industry. This program will offer
businesses financial incentives to promote city
residency during the hiring process and beyond
for their employees. This program is intended
to ensure that the City of Coffeyville retains the
maximum number of residents, so that both
businesses and the community benefits from
new employees moving to the community.
ELIGIBLE APPLICANTS
Businesses in Coffeyville and within 10 miles of
the city limits of Coffeyville are eligible for this
program. A new or existing business is eligible
provided they are hiring a minimum of 10 new
employees.
ELIGIBILITY CRITERIA
• Employee Residency shall mean the
address listed on an employee’s federal and
state tax returns, driver’s license, and
automobile registration if applicable.
Employees with a Coffeyville address or zip
code will be listed as eligible for the
employer incentive.
• To participate, the company agrees to
promote the community of Coffeyville and
Montgomery County for employee
residency within internal human resources
initiatives.
• To document employee residency and that
the employee commitment and
compensation commitment have been met,
the company agrees to provide the City by
March 1 of each year with
• copies of their Kansas Quarterly wage forms
and attached schedules;
• a schedule identifying the hourly base wage
rate, base hours worked, hire date, employee
residency and job classifications of each
employee;
• And any additional schedules necessary to
accurately monitor the pay level of the
employees to be counted towards the
Employee and Compensation Commitment.
The number of employees of each quarter of a
commitment period as shown on the Company’s
Kansas Quarterly Wage Form that meets the
residency criteria shall be averaged. Each 12
month period beginning on January 1 of a
calendar year, and ending on December 31 of a
calendar year will be referred to herein as a
commitment period.
PROGRAM BENEFITS/ELIGIBLE USES
This program will encourage employees of a
company to locate closer to work, thus
establishing an incentive for the employee to
maintain employment with the local company.
This program is intended to serve as an incentive
program for new businesses or expansions,
however, current employers may be eligible if
the City Commission sees that providing such
an incentive to a currently operating company
will ensure a large number of new residents will
likely move to the community to work closer to
home as a result.
FUNDING LIMITS
If the company’s percentage of employee
residency occurring in Coffeyville, Kansas and
Montgomery County, Kansas fall below 60% or
80% respectively for any commitment period,
an additional development grant penalty of
$25,000 will be due for the applicable
commitment period and payable by March 1st of
the following year.
Incentive Programs for Job Creation & Capital Projects
39
APPLICATION/APPROVAL
PROCEDURE
To apply for this program, contact the City
Manager of the City of Coffeyville at the
information listed below. Companies will need
to provide an expected number of employees
that would currently be eligible for the program,
and the number of employees currently residing
outside of the City of Coffeyville or
Montgomery County. Staff will assist the
Human Resources department of the Company
to supply materials that will promote living and
working in Coffeyville as part of this program.
REPORTING REQUIREMENTS
Annual reports on the employee residency
location are required to participate in this
program. These are due on the first of March
each year.
CONTACT
City of Coffeyville
Trisha Purdon, Economic Development
11 E. 2nd Street, P.O. Box 1629
Coffeyville, KS 67337
Phone: (620) 252-6171
Email: [email protected]
Website: www.coffeyville.com
Montgomery County Action Council
Aaron Heckman
115 S. 6th St.
Independence, KS 67301
Phone: 620-331-3830
Fax: 620-331-3834
Email: [email protected]
Website: www.actioncouncil.com
Incentive Programs for Job Creation & Capital Projects
40
HIGH PERFORMANCE INCENTIVE PROGRAM (HPIP)
PURPOSE
This program provides a 10 percent corporate
income tax credit on the qualified capital
investment of an eligible company. Qualified
capital investment can include such items as the
purchase or lease of a facility or equipment,
remodeling or build-out costs, fixtures, furniture
and computers. Equipment transferred to
Kansas from out-of-state is also credited at the
original acquisition cost. The 10 percent tax
credit is awarded to companies that operate an
eligible business, pay above-average wages and
invest in employee training. The credits can be
used to significantly reduce a company’s
corporate income tax liability in a given year.
AUTHORIZATION
A key component of HPIP is the completion of
the Project Description form, which must be
submitted to the Department of Commerce prior
to the company signing any document, such as a
lease or purchase agreement, which commits the
company to locating or expanding in Kansas.
ELIGIBLE APPLICANTS
The 10 percent tax credit is awarded to
companies that operate an eligible business, pay
above-average wages and invest in employee
training.
ELIGIBILITY CRITERIA
Credits must be used within a consecutive 16-
year period. The minimum investment threshold
to qualify for HPIP is $50,000.
PROGRAM BENEFITS/ELIGIBLE USES
Up to a 10% tax credit on qualified, new capital
investment beyond the first $50,000 of investment (i.e. $2,000,000 investment could
potentially result in a $195,000 investment tax
credit or 10% of $1,950,000).
Up to a $50,000 per year (workforce) training
tax credit on training expenditures exceeding 2% of company payroll.
Exemption from sales tax for eligible capital
investment/expenditures.
Eligibility based upon two criteria: (1) pay an
above average wage for NAICS category for region of the state; and (2) invest at least two
percent of payroll in training or participate in
one of Commerce’s workforce training
programs such as KIT or KIR (depends on timing of contract)
Actual investment must occur while the
company’s worksite is HPIP certified.
Investment must be documented to
Commerce prior to the company’s written or
contractual committal to the investment;
Maximum of 16-year carry forward on unused
credits. Company must become HPIP “re-
certified” in any year in which unused credits are
applied.
No job creation required to participate.
Cannot be used if taxpayer chooses Machinery
& Equipment Expense Deduction.
CONTACT
Montgomery County Action Council
Aaron Heckman
115 S. 6th St.
Independence, KS 67301
Phone: 620-331-3830
Fax: 620-331-3834
Email: [email protected]
Website: www.actioncouncil.com
Craig VanWey
Southeast Regional Project Manager
Business and Community Development Div.
Kansas Department of Commerce 1501 South Joplin St. – Shirk Hall
Pittsburg, KS 66762
Phone: (785) 633-8407
www.kansascommerce.com
Incentive Programs for Job Creation & Capital Projects
41
PROMOTING EMPLOYMENT ACROSS KANSAS (PEAK)
PURPOSE
The Promoting Employment Across Kansas
(PEAK) incentive program allows qualified for-
profit and regional or national non-for-profit
headquarter companies that are locating new
jobs or expanding existing Kansas operation, to
retain 95 percent (95%) of the payroll
withholding tax of the PEAK jobs for up to ten
years.
AUTHORIZATION
Per K.S.A. 74-50,210 through 74-50,216 (also
known as the PEAK Act), the Secretary of
Commerce has sole discretion to approve
qualified companies and determine length of
benefit.
ELIGIBLE APPLICANTS
Companies need to create at least five new jobs
within two years. High Impact projects that
create 100 new jobs within two years can retain
95% of payroll withholding tax for a period of
10 years. The number of years that the
withholding tax can be retained depends on how
much the annual median wage of the jobs in the
project will exceed the current county median
wage and the discretion of the Secretary of the
Kansas Department of Commerce. If the
aggregate median wage of the new jobs does not
qualify the project for PEAK, the annual
average wage of the new jobs can be used.
ELIGIBILITY CRITERIA
1. A PEAK application must be submitted
before locating or creating PEAK-eligible
jobs in Kansas.
2. Must create new jobs in Kansas resulting
from relocating, locating or expanding a
business.
3. For-profit companies shall not have the
NAICS assignment of: Industry group 7132
(Gambling Industries) or 8131 (Religious
Organizations); (Retail Trade), 61
(Educational Services), 92 (Public
Administration) or 221 (Utilities including
water & sewer services); Subsector 722
(Food Services and Drinking Places);unless
applying as an international or national
headquarters or an administrative/back
office facility
4. Not-for-profit regional/national
headquarters may apply.
5. Shall not be a bioscience company.
6. Shall not be delinquent in the payment of
taxes to any federal, state and/or local taxing
entities.
7. Shall not be under the protection of the
federal bankruptcy code.
8. Must make available to full-time employees
adequate health insurance coverage and pay
at least 50 percent (50%) of the premium.
9. Must have a median wage for PEAK jobs of
at least 100 percent (100%) of the county
median wage (CMW) or industry NAICS as
published by the Kansas Department of
Labor (KDOL) at the time of application for
the county in which the jobs will be located.
10. Must create a minimum of 5 PEAK jobs
within two years.
11. Must create a minimum of 100 jobs within
two years of application regardless of
location to receive high impact program
benefits.
12. Must be approved by the Secretary of
Commerce (Secretary) to participate in
program.
APPLICATION/APPROVAL
PROCEDURE
Applications are accepted throughout the year
and must be received prior to hiring PEAK
jobs/ employees in Kansas. For more
information, see our web site at
www.kansascommerce.com.
Incentive Programs for Job Creation & Capital Projects
42
CONTACT
Montgomery County Action Council
Aaron Heckman
115 S. 6th St.
Independence, KS 67301
Phone: 620-331-3830
Fax: 620-331-3834
Email: [email protected]
Website: www.actioncouncil.com
Craig VanWey
Southeast Regional Project Manager
Business and Community Development Div.
Kansas Department of Commerce
1501 South Joplin St. – Shirk Hall
Pittsburg, KS 66762
Phone: (785) 633-8407
www.kansascommerce.com
Incentive Programs for Job Creation & Capital Projects
43
MACHINERY & EQUIPMENT EXPENSE DEDUCTION
PURPOSE
Effective January 1, 2012, Kansas taxpayers
will be allowed to claim an expense deduction
for business machinery and equipment, placed
in service in Kansas during the tax year. The
one-time deduction is allowed for each qualified
purchase of machinery and equipment in the
year that it is placed in service. The deduction
is representative of the difference between the
cost of the item and the value of the stream of
depreciation deductions allowed under normal
federal depreciation rules.
ELIGIBLE APPLICANTS
If taxpayer elects to claim expensing deduction,
they cannot claim tax credits or other incentives
under the following: HPIP credit; research and
development credit; alternative fuel vehicle
credit; swine facility improvement credit;
historic preservation credit; refinery credit or
accelerated depreciation; oil or gas pipeline or
accelerated depreciation; integrated coal or coke
gasification nitrogen fertilizer plant credit or
accelerated depreciation; biomass-to-energy
plant credit or accelerated depreciation;
integrated coal gasification power plant credit;
renewable electric cogeneration facility credit or
accelerated depreciation; biofuel storage and
blending equipment credit or accelerated
depreciation; carbon dioxide capture equipment
credit; or film production credit.
ELIGIBILITY CRITERIA
Eligible investment is in machinery and
equipment depreciable under the Modified
Accelerated Cost Recovery System (MACRS)
in section 168 of the Internal Revenue Code, or
canned software as defined in section 197 of the
Internal Revenue Code. Examples of eligible
equipment include manufacturing equipment,
office furniture, computers, software, racking.
Qualifying property excludes residential rental
property, nonresidential real property, any
railroad grading or tunnel bore or any other
property with an applicable recovery period in
excess of 25 years.
SPECIAL PROGRAM REQUIREMENTS
The expensing deduction program and HPIP
cannot both be utilized for the same item/asset.
However, expensing & HPIP can be used for the
same project. For instance, if a project involves
both construction (real property) and M&E
purchases (personal property), the M&E
purchases could benefit from expensing while
the building construction/expansion/renovation
investment could benefit from HPIP.
APPLICATION/APPROVAL
PROCEDURE Contact: Jim Weisgerber, Dept. of Revenue, 785-296-2479
CONTACT
Montgomery County Action Council
Aaron Heckman
115 S. 6th St.
Independence, KS 67301
Phone: 620-331-3830
Fax: 620-331-3834
Email: [email protected]
Website: www.actioncouncil.com
Craig VanWey
Southeast Regional Project Manager
Business and Community Development Div.
Kansas Department of Commerce 1501 South Joplin St. – Shirk Hall
Pittsburg, KS 66762
Phone: (785) 633-8407
Incentive Programs for Job Creation & Capital Projects
44
SALES AND PROPERTY TAX EXEMPTIONS
SALES TAX EXEMPTIONS
The Kansas state sales and use tax rate is 6.15
percent. However, there are several sales tax
exemptions available which include:
Labor services related to original
construction
Remodeling costs, furnishings, furniture,
machinery and equipment for qualified
projects
New machinery and equipment for
manufacturing and distribution. This also
includes pre- and post-production
machinery and equipment, including raw
material handling, waste storage, water
purification and oil cleaning, as well as
ancillary property such as gas pipes,
electrical wiring and pollution control
equipment. The installation, repair, and
maintenance services performed on this
equipment are also exempt.
Tangible personal property that becomes an
ingredient or component part of a finished
product
Tangible personal property that is
immediately consumed in the production
process, including electric power, natural
gas and water
Incoming and outgoing interstate telephone
or transmission services (WATTS)
Real and personal property financed with an
Industrial Revenue Bond
PROPERTY TAX EXEMPTIONS
Machinery and Equipment Property Tax
Exemption
Commercial and industrial machinery and
equipment acquired by qualified purchase or
lease or transferred into the state is exempt from
state and local property tax. The exemption
pertains to machinery and equipment used in the
expansion of an existing facility or the
establishment of a new facility. The exemption
covers machinery and equipment used in
manufacturing or warehousing/distribution,
commercial equipment, computers, desks and
chairs, copiers and fax machines.
Property Tax Abatement
Cities or counties may exempt real property
from ad valorem taxation. The tax abatement
can include all or any portion of the appraised
buildings, land and improvements. A total or
partial tax abatement may be in effect for up to
10 years after the calendar year in which the
business commences its operations. Any
property tax abatement is the decision of the city
or county.
For information about these sales tax
exemptions and if your company would qualify,
please contact the City of Coffeyville, or the
State of Kansas Department of Commerce
representative listed below.
CONTACT
Montgomery County Action Council
Aaron Heckman
115 S. 6th St.
Independence, KS 67301
Phone: 620-331-3830
Fax: 620-331-3834
Email: [email protected]
Website: www.actioncouncil.com
Craig VanWey
Southeast Regional Project Manager
Business and Community Development Div.
Kansas Department of Commerce
1501 South Joplin St. – Shirk Hall
Pittsburg, KS 66762
Phone: (785) 633-8407
Email: [email protected]
Incentive Programs for Job Creation & Capital Projects
45
OTHER STATE TAX INCENTIVES AND BUSINESS INITIATIVES
RIGHT TO WORK STATE
Union membership in Kansas is 6.8 percent,
which is well below the national average. This
right to work law secures the right of employees
to decide for themselves whether or not to join
or financially support a union.
INVENTORY TAX EXEMPTION
All merchant and manufacturers’ inventories are
exempt from property taxes. Inventory includes
those items that:
Are primarily held for sale in the ordinary
course of business (finished goods);
Are in process of production for sale (work
in progress); or
Are to be consumed either directly or
indirectly in the production of finished
goods (raw materials & supplies).
RESEARCH TAX CREDIT
Kansas offers an income tax credit equal to
6.5% of a company’s investment in research and
development above the average expenditure of
the previous three-year period. Twenty-five
percent of the allowable annual credit may be
claimed in any one year.
NO LOCAL INCOME TAXES
Kansas cities and counties do not impose an
earnings tax on personal or corporate income.
NO KANSAS FRANCHISE TAX
Kansas eliminated its franchise tax in 2011.
WORKERS COMPENSATION
Kansas is ranked as the 9th lowest in the U.S.
for worker compensation rates.
CONTACT
Montgomery County Action Council
Aaron Heckman
115 S. 6th St.
Independence, KS 67301
Phone: 620-331-3830
Fax: 620-331-3834
Email: [email protected]
Website: www.actioncouncil.com
Craig VanWey
Southeast Regional Project Manager
Business and Community Development Div.
Kansas Department of Commerce 1501 South Joplin St. – Shirk Hall
Pittsburg, KS 66762
Phone: (785) 633-8407
www.kansascommerce.com
Loan Programs
46
Loan Programs
E-Community Business Loan Program
Community Development Block Grant Micro-Loan Program (CDBG Micro-loan)
USDA RDA Micro-Loan Program
Coffeyville Small Business Loan Program
Coffeyville Small Business Loan Guarantee Program
KDOT Transportation Economic Development Loan Program
(TEDL)
Southeast Kansas Revolving Loan Fund
Rural Economic Development Loan & Grant (REDLG)
USDA Business & Industry Guaranteed Loans (B&I)
USDA Rural Energy for America Program Guaranteed Loan Program (REAP Loans)
Loan Programs
47
E-COMMUNITY BUSINESS LOAN
PURPOSE
Downtown Coffeyville, Inc. was selected to
partner with NetWork Kansas to establish a
locally-administered loan fund to assist
entrepreneurs with capital, to increase
connectivity to resources available to assist
entrepreneurs and small businesses, to initiate
activities to generate entrepreneurial
development, and to participate in a statewide
partnership with other E-Communities. The
goal of the E-Community partnership is to
increase entrepreneurial activity and develop a
self-sustaining ecosystem favorable to long-
term entrepreneurial growth. Over $75,000 is
available to Coffeyville businesses in this loan
fund.
The E-Community program has made
a commitment to cultivating an entrepreneurial
environment by identifying and developing
resources to help local entrepreneurs start or
grow businesses. E-Communities have assets
available to assist entrepreneurs and small
businesses, including a locally
administered revolving loan fund and
connections to business mentors, training, and
other resources.
AUTHORIZATION
A NetWork Kansas E-Community is a
partnership that allows a town, a cluster of
towns, or an entire county to raise seed money
for local entrepreneurs through donations from
individuals or businesses within the
community. Network Kansas awarded $75,000
to Downtown Coffeyville, Inc. to establish
Coffeyville as an E-Community.
ELIGIBLE AREAS
Businesses in and within 5 miles of the
Coffeyville city boundaries are eligible for E-
Community funding.
ELIGIBLE APPLICANTS
A business must create at least one new job in
Coffeyville to be eligible for the program.
Applicants must be able to complete a full
business plan, financial review and credit check,
and be available to meet with the Leadership and
Loan Review Board upon request.
PROGRAM BENEFITS/ELIGIBLE USES
The E-Community program is a flexible
program that allows new entrepreneurs
flexibility with interest rates, repayment
schedules, and other typical loan hindrances for
new companies. All loan terms are based on
credit worthiness, strength of business plan and
financial resources, and interview with Loan
Advisory Board. Previous loans have been
awarded:
Zero Percent Interest for 12 months;
4% interest for term of loan;
12 month repayment grace period;
Interest only payments for 12 months
FUNDING LIMITS
The maximum loan under this program is
$40,000 and must be matched at a rate of 60:40.
For example a $40,000 loan must have matching
funds of $26,667 in either conventional
financing from a lender, or private financing
from a public entity such as the Montgomery
County Action Council or the City of
Coffeyville Economic Development Group.
Personal funds will not count toward matching
fund requirements, but are not discouraged as
part of the application package.
APPLICATION/APPROVAL
PROCEDURE
Applications are available at
www.actioncouncil.com. Applications must be
completed ELECTRONICALLY. Hand written
applications are not accepted. Three years of
previous tax returns (either individual or
business), and a spreadsheet detailing the
sources and uses of how the business will utilize
E-Community funds, personal funds, and the
Loan Programs
48
matching loan funds is required to accompany
the completed application.
For assistance in completing the E-Community
Application, contact Downtown Coffeyville,
Inc., the Montgomery County Action Council,
or the Innovative Business Resource Center at
the contact numbers listed below.
REPORTING REQUIREMENTS
Annual financial reports are due at the end of
each calendar year. Reports must be submitted
within 60 days of December 31, 2014.
CONTACT
Downtown Coffeyville, Inc.
807 ½ Walnut Street
Coffeyville, KS 67337
Phone: 620-251-2550
Email: [email protected]
Montgomery County Action Council
Aaron Heckman
115 S. 6th St.
Independence, KS 67301
Phone: 620-331-3830
Fax: 620-331-3834
Email: [email protected]
Website: www.actioncouncil.com
Innovative Business Resource Center
Jim Correll
Executive Vice President
Phone: 620-332-5470
Loan Programs
49
CDBG MICRO-LOAN
PURPOSE
Montgomery County was awarded $100,000 in
Community Development Block Grant funds by
the Kansas Department of Commerce and
Housing in 1999 to be used as a revolving loan
fund. The Montgomery County Action Council
serves as the facilitator of this fund.
These funds are revolving, and loans are
available in $25,000 increments to start-up or
existing businesses in Coffeyville. The goal of
the program is to keep these funds revolving in
the community, constantly stimulating new
business and assisting existing businesses.
AUTHORIZATION
The Montgomery County Action Council
(MCAC) is the administrator of this loan fund.
The Executive Committee of MCAC is the loan
review board of this program, with final
authorization by County Commissioners of
Montgomery County.
ELIGIBLE AREAS
Businesses in Montgomery County are eligible
for this loan fund.
ELIGIBLE APPLICANTS
Applicants must complete an application
process which is similar to one required by any
lender. Businesses are required to create at least
one job. In the case of start-up businesses, this
requirement is fulfilled by the creation of the
applicant’s job.
PROGRAM BENEFITS/ELIGIBLE USES
The CDBG Loan program is a flexible program
that allows flexibility with interest rates,
repayment schedules, and other typical loan
hindrances for new companies. All loan terms
are based on credit worthiness, strength of
business plan and financial resources, and
interview with Loan Advisory Board. Previous
loans have been awarded:
Zero Percent Interest for 12 months;
5% interest for term of loan;
Interest only payments for 12 months
FUNDING LIMITS
Loans are limited to $25,000. However, you can
apply for both the RDA and CDBG
simultaneously, for a total of $50,000. Only one
administration charge will be incurred for joint
applications.
APPLICATION/APPROVAL
PROCEDURE
Applications are available at
www.actioncouncil.com. Applications must be
completed ELECTRONICALLY. Hand written
applications are not accepted. Three years of
previous tax returns (either individual or
business), and a spreadsheet detailing the
sources and uses of how the business will utilize
funds is required to accompany the completed
application.
For assistance in completing the Application,
contact the Montgomery County Action Council
at the contact numbers listed below.
REPORTING REQUIREMENTS
Annual financial reports are due at the end of
each calendar year. Reports must be submitted
within 60 days of December 31, 2014.
SPECIAL PROGRAM REQUIREMENTS
There is a non-refundable $500 application and
processing fee for all applications that are
presented to the loan advisory committee.
Funds will be returned if application does not
meet initial eligibility standards.
Loan Programs
50
CONTACT
City of Coffeyville
Trisha Purdon, Economic Development
11 E. 2nd Street, P.O. Box 1629
Coffeyville, KS 67337
Phone: (620) 252-6171
Fax: 620-252-6175
Email: [email protected]
Website: www.coffeyville.com
Montgomery County Action Council
Aaron Heckman
115 S. 6th St.
Independence, KS 67301
Phone: 620-331-3830
Fax: 620-331-3834
Email: [email protected]
Website: www.actioncouncil.com
Loan Programs
51
USDA RDA REVOLVING LOAN FUND
PURPOSE
The Rural Development Loan Fund was
established in Montgomery County in 1997 and
consists of 65% federal grant money and 35%
matching funds provided by the Montgomery
County Action Council. The goal of the program
is to assist start-up or existing manufacturing
businesses located in Montgomery County. The
RDA Micro-Loan Program’s funds revolve in
two ways: funds can be accessed by one
company more than once, and all loan proceeds
go back into the fund to be recycled in the
community. RDA Micro-Loans can be made to
existing or start-up businesses located anywhere
in Montgomery County. Loans of $25,000 or
less at favorable interest rates can be used to
acquire machinery and equipment or to provide
working capital for inventory/materials to be
used in production.
AUTHORIZATION
The Montgomery County Action Council
(MCAC) is the administrator of this loan fund.
The Executive Committee of MCAC is the loan
review board of this program.
ELIGIBLE AREAS
RDA Micro-Loans can be made to existing or
start-up businesses located anywhere in
Montgomery County.
HOW THE PROGRAM WORKS
The RDA Micro-Loan Program’s funds revolve
in two ways: funds can be accessed by one
company more than once, and all loan proceeds
go back into the fund to be recycled in the
community. Loans of $25,000 or less at
favorable interest rates can be used to acquire
machinery and equipment or to provide working
capital for inventory/materials to be used in
production.
ELIGIBILITY CRITERIA
Applicants must complete an application
process which is similar to one required by any
lender. Businesses are required to create at least
one job. In the case of start-up businesses, this
requirement is fulfilled by the creation of the
applicant’s job.
PROGRAM BENEFITS/ELIGIBLE USES
The RDA Loan program is a flexible program
that allows flexibility with interest rates,
repayment schedules, and other typical loan
hindrances for new companies. All loan terms
are based on credit worthiness, strength of
business plan and financial resources, and
interview with Loan Advisory Board. Previous
loans have been awarded:
Zero Percent Interest for 12 months;
5% interest for term of loan;
Interest only payments for 12 months
FUNDING LIMITS
Loans are limited to $25,000. However, you can
apply for both the RDA and CDBG
simultaneously, for a total of $50,000. Only one
administration charge will be incurred for joint
applications.
APPLICATION/APPROVAL
PROCEDURE
Applications are available at
www.actioncouncil.com. Applications must be
completed ELECTRONICALLY. Hand written
applications are not accepted. Three years of
previous tax returns (either individual or
business), and a spreadsheet detailing the
sources and uses of how the business will utilize
funds is required to accompany the completed
application.
For assistance in completing the Application,
contact the Montgomery County Action Council
at the contact numbers listed below.
REPORTING REQUIREMENTS
Annual financial reports are due at the end of
Loan Programs
52
each calendar year. Reports must be submitted
within 60 days of December 31, 2014.
SPECIAL PROGRAM REQUIREMENTS
There is a non-refundable $500 application and
processing fee for all applications that are
presented to the loan advisory committee.
Funds will be returned if application does not
meet initial eligibility standards.
CONTACT
City of Coffeyville
Trisha Purdon, Economic Development
11 E. 2nd Street, P.O. Box 1629
Coffeyville, KS 67337
Phone: (620) 252-6171
Fax: 620-252-6175
Email: [email protected]
Website: www.coffeyville.com
Montgomery County Action Council
Aaron Heckman
115 S. 6th St.
Independence, KS 67301
Phone: 620-331-3830
Fax: 620-331-3834
Email: [email protected]
Website:www.actioncouncil.com
Loan Programs
53
COFFEYVILLE SMALL BUSINESS LOAN PROGRAM
PURPOSE
The program is designed to stimulate economic
growth and create jobs that will improve the
living conditions of residents in the community.
The program provides affordable, non-
conventional financing, typically “gap
financing,” to eligible businesses and
development projects that are not able to receive
funding elsewhere. Businesses receiving these
funds will be required to produce a sufficient
number of net new jobs, or in the case of
business retention, retain existing jobs.
ELIGIBLE AREAS
Financing under this program is available to all
eligible businesses located within the city limits
of the City of Coffeyville or within the
Coffeyville Industrial Park.
ELIGIBLE APPLICANTS
Loan applicants for the Program must be
existing legal businesses, located within the City
of Coffeyville, with a proper local business
license (if applicable), insurance, and required
permits per local, state and federal requirements.
If an applicant is a new start-up business and
does not have proper licenses or insurance, then
these items can be made a condition of funding
the loan. The business can be a tenant leasing
space or an owner of property where the
business is located. The existing business must
create one or more new permanent full time
equivalent (FTE) jobs.
ELIGIBILITY CRITERIA
No member of the City Commission and no
official, employee or agent of the City of
Coffeyville, nor any other person who exercises
policy or decision-making responsibilities in
connection with the planning and
implementation of the economic development
policies or programs shall directly or indirectly
be eligible for this program. Exceptions to this
policy can be made only after public disclosure
and formal approval by the City Commission
and authorized in writing by the City of
Coffeyville’s legal counsel.
Eligible applicants must be able to secure
financing with another financial institution to be
eligible. This may be private lender, public
institution such as the MCAC Micro-loan
program, E-Community, etc. This loan is not
intended to provide 100% financing for any
project and is limited to 60% of project costs.
PROGRAM BENEFITS/ELIGIBLE USES
Funds under this program are restricted to
certain eligible costs. Some common eligible
costs are:
Operating capital (including license and
permit fees if applicable)
Renovation of leased space or owned
buildings (including engineering,
architectural, and local permits or fees),
new construction, or acquisition of
existing commercial or industrial space.
Purchase of manufacturing equipment
(with or without installation costs)
Furniture, fixtures and equipment
(FF&E)
In most cases, loan funds will be disbursed
incrementally on a reimbursement basis, or
direct payment of vendor/contractor invoices, as
eligible costs are verified.
FUNDING LIMITS
Loans are limited to $75,000 per business,
however, loan requests will be considered on a
case by case basis. Program funding on an
annual basis is limited to funding availability
and outstanding loan liabilities and is subject to
Commission approval.
APPLICATION REQUIREMENTS
Loans will be considered on a case by case basis
by the loan review committee. Applications
Loan Programs
54
should include a completed loan application
form, business plan, pro-forma financial
information, job creation information, and a
completed review of the tax impact on the
community.
City of Coffeyville
Trisha Purdon, Economic Development
11 E. 2nd Street
P.O. Box 1629
Coffeyville, KS 67337
Phone: (620)252-6171
Fax: 620-252-6175
Email: [email protected]
Website: www.coffeyville.com
Loan Programs
55
COFFEYVILLE SMALL BUSINESS LOAN GUARANTEE PROGRAM
PURPOSE
The program is designed to stimulate economic
growth and create jobs that will improve the
living conditions of residents in the community.
The program provides loan guarantees for
conventional financing, typically “gap
financing,” to eligible businesses and
development projects, to enhance the credit
worthiness of projects that otherwise might have
difficulty in securing conventional financing.
Businesses participating in the program will be
required to produce a sufficient number of net
new jobs, or in the case of business retention,
retain existing jobs, or fulfill a need within the
community that is aligned with the strategic,
economic, or community development needs of
the City.
AUTHORIZATION
The City of Coffeyville is the administrator of
this loan guarantee program. Budgetary
approval for the program rests with the authority
of the City Commission, while authorization for
program implementation is the responsibility of
assigned staff, consistent with existing
economic development policies, programs, and
procedures.
ELIGIBLE AREAS
Financing under this program is available to all
eligible businesses located within the city limits
of the City of Coffeyville or within the
Coffeyville Industrial Park.
ELIGIBLE APPLICANTS
Loan applicants for the Program must be
existing legal businesses, located within the City
of Coffeyville, with a proper local business
license (if applicable), insurance, and required
permits per local, state and federal requirements.
If an applicant is a new start-up business and
does not have proper licenses or insurance, then
these items can be made a condition of the loan
guarantee. Business can be a tenant leasing
space or an owner of property where the
business is located. The existing business must
create one or more new permanent full time
equivalent (FTE) jobs.
ELIGIBILITY CRITERIA
No member of the City Commission and no
official, employee or agent of the City of
Coffeyville, nor any other person who exercises
policy or decision-making responsibilities in
connection with the planning and
implementation of the economic development
policies or programs shall directly or indirectly
be eligible for this program. Exceptions to this
policy can be made only after public disclosure
and formal approval by the City Commission
and authorized in writing by the City of
Coffeyville’s legal counsel.
Eligible applicants must secure financing with
another financial institution to be eligible for the
loan guarantee. The City will work with that
institution to secure the loan. Loans are subject
to final approval by the City Commission, and
must conform to the policies, procedures and
economic development guidelines established
by the City Commission.
PROGRAM BENEFITS/ELIGIBLE USES
Typical costs associated with the program
include but are not limited to:
Operating capital (including license and
permit fees if applicable)
Renovation of leased space or owned
buildings (including engineering,
architectural, and local permits or fees),
new construction, or acquisition of
existing commercial or industrial space.
Purchase of manufacturing equipment
(with or without installation costs)
Furniture, fixtures and equipment
(FF&E)
In most cases, loan funds will be disbursed
Loan Programs
56
incrementally on a reimbursement basis, or
direct payment of vendor/contractor invoices, as
eligible costs are verified.
FUNDING LIMITS
Loan Guarantees are limited to generally
$150,000 per business. Program funding on an
annual basis is limited to funding availability,
and outstanding loan guarantee liabilities.
RECOMMENDED UTILIZATION
GUIDELINES
The amount of the small business loan guarantee
will not exceed $150,000 excluding the costs for
the addition or replacement of public
infrastructure. If project costs exceed this
amount, the loan review committee and/or City
Commission will review on a case by case basis
to cover the remaining costs. Favorable
consideration will be given to projects that:
Meet the City’s objectives outlined in the
Comprehensive Plan, Economic
Development Plan, or other area
development plans;
Are anticipated to serve as catalysts for
additional development or redevelopment
that meets the goals of the city;
Plans that have a payoff in 12 years or less;
Provide at least 15% of equity from the
developer;
Satisfy unmet retail or commercial demand;
Or
Incorporate other financing mechanisms to
support the project where applicable.
APPLICATION REQUIREMENTS
Loans will be considered on a case by case basis
by the loan review committee. All Loan
Guarantees are subject to final review and
approval by the City Commission. Applications
should include a completed loan application
form, business plan, pro-forma financial
information, job creation information, and a
completed review of the tax impact on the
community.
City of Coffeyville
Trisha Purdon, Economic Development
11 E. 2nd Street
P.O. Box 1629
Coffeyville, KS 67337
Phone: (620)252-6171
Fax: 620-252-6175
Email: [email protected]
Website: www.coffeyville.com
Loan Programs
57
KDOT TRANSPORTATION ECONOMIC DEVELOPMENT LOAN PROGRAM (TEDL)
PURPOSE
The State will partner with local governments
and the private sector to support the State’s
economy by creating net new jobs and
encouraging capital investment. The program
provides bridge loans through partnerships with
local governments and the private sector.
HOW IT WORKS
TEDL is a reimbursement loan program where
incremental revenues that result from private
development spurred by development of the
transportation improvement are dedicated to pay
off the bonds that were used to finance the initial
construction of the project. The local unit of
government is also required to pledge its’
general obligation taxing authority for
repayment of the loan.
ELIGIBLE PROJECTS
Roadway projects, most likely interchange and
corridor management projects that can be shown
to support job growth or capital investment in
the State. Only roadway projects are eligible,
including road projects on and off the state-
systems. Typical projects would most likely be
interchanges and other enhancements that
increase capacity or improve connectivity.
ELIGIBLE APPLICANTS
Local governments or local government in
partnership with a private business
ELIGIBILITY CRITERIA
Must be non-speculative, meaning the
program is not intended to fund
improvements merely for future recruitment
of businesses
Requires a three-party agreement between
the KDOT, the local government, and the
private sector business.
Other basic infrastructure must be in place
or eminent, such as water and other utilities
Projects cannot just transfer business from
one part of the state to another
Must have the support of local leaders such
as elected officials and the chamber of
commerce
FUNDING LIMITS
TEDL funding is situational.
APPROVAL PROCEDURE
Applications will be considered as they are
received. If a project’s approval is critical to
recruit a new business to the State, a decision
will be made within 45 days.
APPLICATION REQUIREMENTS
Begin with the General Local Opportunities
Application, available at
http://www.ksdot.org/tworks/ecodevo/downloa
ds/genapp2011.docx.
CONTACT
Montgomery County Action Council
Aaron Heckman
115 S. 6th St.
Independence, KS 67301
Phone: 620-331-3830
Fax: 620-331-3834
Email: [email protected]
Website: www.actioncouncil.com
Kansas Department of Transportation
Danielle Marten, Program Manager
Phone: (785) 296-0324
Email: [email protected]
OR
Alicia Johnson-Turner
KDOT Economic Development Coordinator
Phone: (785) 296-7960
Email: [email protected]
Loan Programs
58
SOUTHEAST KANSAS REVOLVING LOAN FUND
PURPOSE
The purpose of this program is to offer
Southeast Kansas businesses gap loan funding.
The program is targeted for firms that employ
the long-term unemployed and the dislocated
worker. Efforts will also be made to encourage
industries that not only upgrade the skills of the
current labor force, but also alter the current
dependence upon labor-intensive lower skilled
workers. Funds must be used for projects that
save or create jobs.
ELIGIBLE AREAS
Businesses located in the Southeast Kansas
Economic Development District (SEKEDD).
The SEKEDD includes Allen, Anderson,
Bourbon, Cherokee, Coffey, Crawford, Linn,
Labette, Montgomery, Neosho, Wilson and
Woodson Counties.
ELIGIBLE APPLICANTS
Manufacturing, service and retail businesses
may apply subject to the following limitations:
A loan portfolio of 100% industrial loans is
permissible at the discretion of the Regional
Loan Advisory Committee. Loans to
commercial/service businesses may not
exceed 40% of the total RLF loan portfolio.
Loans to retail sales businesses may not
exceed 5% of the total RLF Loan Portfolio.
It is estimated that at least 50% of the loans
will be made to existing firms, with the
majority being for new jobs as opposed to
retention.
Loans to retail businesses will be limited to
firms that have no local competition within
a 25 mile radius. Exceptions may be granted
on a case-by-case basis.
ELIGIBLE USES
Providing ample security is obtained, at least a
second position, the RLF will allow working
capital to represent no more than 30% of the
total portfolio, with fixed asset loans
constituting the remainder.
FUNDING LIMITS
Loans are currently limited to a maximum of
$100,000. However, the funds must be used for
projects that save or create jobs. Businesses
may apply for a maximum of $25,000 per job
saved or created by the loan project.
APPLICATION PROCEDURE
A completed application will include a
completed application, information on each of
the below requirements, as well as a $500 loan
application fee that covers the cost of loan
origination, credit checks, and staff time in
processing the application. The loan application
can be found at:
http://www.sekrpc.org/cms/Services/Revolving
LoanFundRLF/tabid/89/Default.aspx
Collateral Requirements
Security arrangements will differ relative to the
nature of the project. Personal guarantees may
be required. Standard private sector promissory
notes will be utilized, including due and payable
clauses, and recovery clauses. Real property,
furniture, fixtures, machinery may be
considered as collateral. Other types of assets
may be considered on a case-by-case basis.
Each loan application will be considered on its
own merits and in some cases a reduction in
leverage may be made, particularly if a first
position is available on fixed assets. On fixed-
asset loans, the RLF will consider a subordinate
lien position.
Loan Terms
Working Capital Loans: 3-5 Years
Equipment and Machinery Loans: 5-7 Years
Building and land: Case by case basis
Loan Programs
59
Interest Rates
The minimum interest rate charge is four
percentage points below the current money
center prime quoted in the Wall Street Journal.
In no event may the interest rate be less than four
percent. However, should the prime interest rate
exceed fourteen percent, the minimum RLF rate
charge is not required to be raised above ten
percent if to do so would compromise the ability
of the RLF to implement its financing strategy.
Owner Equity/Matching Requirements
The SEKRPC RLF does not provide 100%
project financing. All projects will require
equity injection. The overall RLF portfolio will
maintain the required ratio of two dollars of
leverage for every one dollar of RLF
investment. Private leveraging will be made
concurrently with an RLF loan as a part of the
same business development project and may
include:
Capital invested by borrower and others.
Financing from other private entities
Ninety percent of the guaranteed portions of
SBA 7(a) and 504 debenture loans.
Private investments will not include equity
build-up in a borrower’s assets or prior capital
investments by the borrower.
Credit Reports
Corporate and personal credit reports will be
obtained, as needed, to determine the credit
worthiness of each applicant.
Appraisal Reports
Appraisals of real property, inventory,
equipment, machinery and/or other collateral
properties will be obtained, as needed, to certify
values stated in the application.
Environmental Reviews
Requests for Environmental Comments will be
obtained from state and federal agencies, as
necessary, to certify the nature and extent of any
potential environmental impacts associated with
construction projects.
LOAN APPROVAL PROCESS
1. Applicants will submit completed
applications with the information listed
above included SEKRPC staff. Staff may
provide assistance in the completion of
applications that may initially appear to be
incomplete or fail to meet any of the RLF
program requirements.
2. SEKRPC Board will convene and review the
application. They will either approve the
application for consideration by the
Regional Loan Advisory Committee, or
disapprove the loan application, or suspend
the application for further documentation
and review. The Board will recommend
terms and conditions for approved
applications.
3. Upon payment by the applicant of a $500.00
loan origination fee, applications that have
been approved by the SEKRPC Board will
be recommended for final consideration by
the SEKRPC Executive Committee. If the
loan is not forwarded and approved by the
SEKRPC Executive Committee, a fee of
$300 will be refunded to the applicant.
4. The SEKRPC Executive Committee may
consider applications approved by the
Regional Loan Advisory Committee and
submitted for review prior to its regularly
scheduled meeting. The SEKRPC
Executive Committee meets on the first
Thursday of each month.
5. The SEKRPC Executive Director will notify
applicants of the action of the SEKRPC
Executive Committee in writing. This
notification will usually occur within 24
hours following the meeting of the
Executive Committee.
6. SEKRPC staff will begin the process of
completing the loan contract and
constructing the loan closing packet. Staff
will work in close communication with the
applicant to complete the closing
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60
requirements in a timely manner.
7. Applicant will pay all fees necessary to
secure and protect SEKRPC’s collateral
position. This requirement specifically
applies to, but is not limited to, mortgage
registration filing fees.
8. The loan closing and release of RLF funds
should usually occur within 30 days of
approval by the SEKRPC Executive
Committee.
9. Each application is reviewed on a case by
case basis. There is the possibility of a
modification in the loan origination fee,
terms of notices, etc.
CONTACT
Montgomery County Action Council
Aaron Heckman
115 S. 6th St.
Independence, KS 67301
Phone: 620-331-3830
Fax: 620-331-3834
Email: [email protected]
Website: www.actioncouncil.com
Southeast Kansas Regional Planning
Commission
P.O. Box 664
Chanute, KS 66720
Phone: (620) 431-0664
Email: [email protected]
Website: www.sekrpc.org
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61
RURAL ECONOMIC DEVELOPMENT LOAN & GRANT (REDLG)
PURPOSE
The REDLG program provides funding to rural
projects through local utility organizations.
Under the REDLoan program, USDA provides
zero interest loans to local utilities which they,
in turn, pass through to local businesses
(ultimate recipients) for projects that will create
and retain employment in rural areas. The
ultimate recipients repay the lending utility
directly. The utility is responsible for repayment
to the Agency.
Under the REDGrant program, USDA provides
grant funds to local utility organizations which
use the funding to establish revolving loan
funds. Loans are made from the revolving loan
fund to projects that will create or retain rural
jobs. When the revolving loan fund is
terminated, the grant is repaid to the Agency.
ELIGIBLE APPLICANTS
To receive funding under the REDLG program
(which will be forwarded to selected eligible
projects) an entity must:
Have borrowed and repaid or pre-paid an
insured, direct, or guaranteed loan received
under the Rural Electrification Act or,
Be a not-for-profit utility that is eligible to
receive assistance from the Rural
Development Electric or
Telecommunication Program
Be a current Rural Development Electric or
Telecommunication Programs Borrower
ELIGIBLE PROJECTS
REDLG grantees and borrowers pass the
funding on to eligible projects. Examples of
eligible projects include:
Capitalization of revolving loan funds
Technical assistance in conjunction with
projects funded under a zero interest
REDLoan
Business Incubators
Community Development Assistance to
non-profits and public bodies (particularly
job creation or enhancement)
Facilities and equipment for education and
training for rural residents to facilitate
economic development
Facilities and equipment for medical care to
rural residents
Telecommunications/computer networks
for distance learning or long distance
medical care
FUNDING LIMITS
During FY 2014, approximately $91 million is
available for loans and $10 million for grants.
APPLICATION/APPROVAL
PROCEDURE
To apply for funding for the REDLG program,
please contact your Rural Development State
Office at the contact information listed below.
CONTACT
Montgomery County Action Council
Aaron Heckman
115 S. 6th St.
Independence, KS 67301
Phone: 620-331-3830
Fax: 620-331-3834
Email: [email protected]
Website: www.actioncouncil.com
USDA Rural Development – Business
Program
Katie Casper
Iola Area Office
202 West Miller Road
Iola, KS 66749
Phone: (620) 365-2901, Ext. 1427
Email: [email protected]
Website:
www.rurdev.usda.gov/KS_Home_Contacts.ht
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62
USDA BUSINESS & INDUSTRY GUARANTEED LOANS (B&I)
PURPOSE
The purpose of the B&I Guaranteed Loan
Program is to improve, develop, or finance
business, industry y, and employment and
improve the economic and environmental
climate in rural communities. This purpose is
achieved by bolstering the existing private credit
structure through the guarantee of quality loans
which will provide lasting community benefits.
It is not intended that the guarantee authority
will be used for marginal or substandard loans
or for relief of lenders having such loans.
ELIGIBLE APPLICANTS
A borrower may be a cooperative organization,
corporation, partnership, or other legal entity
organized and operated on a profit or nonprofit
basis; an Indian tribe on a Federal or State
reservation or other federally recognized tribal
group; a public body; or an individual. A
borrower must be engaged in or proposing to
engage in a business that will:
Provide employment;
Improve the economic or environmental
climate;
Promote the conservation, development, and
use of water for aquaculture; or
Reduce reliance on nonrenewable energy
resources by encouraging the development
and construction of solar energy systems and
other renewable energy systems.
Individual borrowers must be citizens of the
United States (U.S.) or reside in the U.S. after
being legally admitted for permanent residence.
Corporations or other nonpublic body
organization-type borrowers must be at least 51
percent owned by persons who are either
citizens of the U.S. or reside in the U.S. after
being legally admitted for permanent residence.
B&I loans are normally available in rural areas,
which include all areas other than cities or towns
of more than 50,000 people and the contiguous
area of such cities or towns.
PROGRAM BENEFITS/ELIGIBLE USES
Loan purposes must be consistent with the
general purpose contained in the regulation.
They include but are not limited to the
following:
Business and industrial acquisitions when
the loan will keep the business from closing,
prevent the loss of employment
opportunities, or provide expanded job
opportunities.
Business conversion, enlargement, repair,
modernization, or development.
Purchase and development of land,
easements, rights-of-way, buildings, or
facilities.
Purchase of equipment, leasehold
improvements, machinery, supplies, or
inventory.
GUARANTEE PERCENTAGE
The percentage of guarantee, up to the
maximum allowed, is a matter of negotiation
between the lender and the Agency. The
maximum percentage of guarantee is 80 percent
for loans of $5 million or less, 70 percent for
loans between $5 and $10 million, and 60
percent for loans exceeding $10 million.
LOAN AMOUNTS/TERMS
Amounts: The total amount of Agency loans to
one borrower must not exceed $10 million. The
Administrator may, at the Administrator
discretion, grant an exception to the $10 million
limit for loans of $25 million under certain
circumstances. The Secretary may approve
guaranteed loans in excess of $25 million, up to
$40 million, for rural cooperative organizations
that process value-added agricultural
commodities.
Terms: The maximum repayment for loans on
real estate will not exceed 30 years; machinery
and equipment repayment will not exceed the
useful life of the machinery and equipment
purchased with loan funds or 15 years,
Loan Programs
63
whichever is less; and working capital
repayment will not exceed 7 years.
Interest Rates: The interest rate for the
guaranteed loan will be negotiated between the
lender and the applicant and may be either fixed
or variable as long as it is a legal rate. Interest
rates are subject to Agency review and approval.
The variable interest rate may be adjusted at
different intervals during the term of the loan,
but the adjustments may not be more often than
quarterly.
Collateral: Collateral must have documented
value sufficient to protect the interest of the
lender and the Agency. The discounted
collateral value will normally be at least equal to
the loan amount. Lenders will discount
collateral consistent with sound loan-to-value
policy.
SPECIAL PROGRAM REQUIREMENTS
There is an annual renewal fee which is paid
once a year and is required to maintain the
enforceability of the guarantee as to the lender.
The rate of the annual renewal fee (a specified
percentage) is established by Rural
Development in an annual notice published in
the Federal Register, multiplied by the
outstanding principal loan balance as of
December 31 of each year, multiplied by the
percent of guarantee. The rate is the rate in effect
at the time the loan is obligated, and will remain
in effect for the life of the loan.
Annual renewal fees are due on January 31.
Payments not received by April 1 are considered
delinquent and, at the Agency discretion, may
result in cancellation of the guarantee to the
lender. Holders’ rights will continue in effect as
specified in the Loan Note Guarantee and
Assignment Guarantee Agreement. Any
delinquent annual renewal fees will bear interest
at the note rate and will be deducted from any
loss payment due the lender. For loans where the
Loan Note Guarantee is issued between October
1 and December 31, the first annual renewal fee
payment will be due January 31 of the second
year following the date the Loan Note
Guarantee was issued.
APPLICATION INFORMATION
Complete applications should be sent to the
USDA Rural Development State Office for the
project location. A list of offices and additional
information can be obtained at:
www.rurdev.usda.gov/recd_map.html.
CONTACT
Montgomery County Action Council
Aaron Heckman
115 S. 6th St.
Independence, KS 67301
Phone: 620-331-3830
Fax: 620-331-3834
Email: [email protected]
Website: www.actioncouncil.com
USDA Rural Development – Business
Program
Katie Casper
Iola Area Office
202 West Miller Road
Iola, KS 66749
Phone: (620) 365-2901, Ext. 1427
Email: [email protected]
Website:
www.rurdev.usda.gov/KS_Home_Contacts.ht
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Loan Programs
64
USDA RURAL ENERGY FOR AMERICA PROGRAM GUARANTEED LOAN PROGRAM (REAP LOANS)
PURPOSE
The REAP Guaranteed Loan Program
encourages the commercial financing of
renewable energy (bioenergy, geothermal,
hydrogen, solar, wind and hydro power) and
energy efficiency projects. Under the program,
project developers will work with local lenders,
who in turn can apply to USDA Rural
Development for a loan guarantee up to 85
percent of the loan amount.
ELIGIBLE APPLICANTS
Borrowers must be an agricultural producer or
rural small business. Agricultural producers
must gain 50% or more of their gross income
from their agricultural operations.
Most lenders are eligible, including national and
state-chartered banks, Farm Credit System
banks and savings and loan associations. Other
lenders may be eligible if approved by USDA.
PROGRAM BENEFITS
Businesses: Benefits include higher loan
amounts, stronger loan applications, lower
interest rates and longer repayment terms that
can assist businesses that may not qualify for
conventional lender financing.
Lenders: Lender benefits include expanding
lender loan portfolio, allowing lenders to make
loans above loan limits, protecting guaranteed
portion of loan against loss by the Federal
Government, existing secondary market for
REAP guarantees, helping to satisfy
Community Reinvestment Act (CRA)
requirements, and allowing lenders to use their
own forms, loan documents, and security
instruments.
Eligible feasibility studies for renewable energy
systems include projects that will produce
energy from wind, solar, biomass, geothermal,
hydro power and hydrogen-based sources. The
energy to be produced includes, heat, electricity,
or fuel.
For all projects, the system must be located in a
rural area, must be technically feasible, and
must be owned by the applicant.
GUARANTEED LOAN SPECIFICATIONS
Loans Limits:
Loans up to 75% of the project’s cost
Maximum of $25 million, minimum of
$5,000
Maximum percentage of guarantee (applies to
whole loan):
85% for loan of $600,000 or less
80% for loans greater than $600,000 but $5
million or less
70% for loans greater than $5 million up to
$10 million
60% for loans greater than $10 million up to
$25 million
Fees and Interest Rates
Lender customary interest rate, fixed or
variable, negotiated by lender and business
Lender customary fees, negotiated by lender
and business
One-time guarantee fee equal to 1% of
guaranteed amount
Annual renewal fee
ELIGIBLE COSTS
Eligible project costs include:
1. Post-application purchase and installation of
equipment
2. Post-application construction or
improvements
3. Energy audits or assessments
4. Permit or license fees
5. Professional service fees
6. Feasibility studies and technical reports
7. Business plans
8. Retrofitting
9. Construction of a new energy efficient
Loan Programs
65
facility only when the facility is used for
the same purpose, is approximately the
same size, and based on the energy audit
will provide more energy savings than
improving an existing facility
10. Working capital
11. Land acquisition.
APPLICATION PROCEDURE
To apply for funding for the Guaranteed Loan
Program please contact the USDA
representative listed.
CONTACT
Montgomery County Action Council
Aaron Heckman
115 S. 6th St.
Independence, KS 67301
Phone: 620-331-3830
Fax: 620-331-3834
Email: [email protected]
Website: www.actioncouncil.com
USDA Rural Development – Business
Program
Katie Casper
Iola Area Office
202 West Miller Road
Iola, KS 66749
Phone: (620) 365-2901, Ext. 1427
Email: [email protected]
Website:
www.rurdev.usda.gov/KS_Home_Contacts.ht
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Loan Programs
66
U.S. SMALL BUSINESS ADMINISTRATION 504 PROGRAM
PURPOSE
The U.S. Small Business Administration (SBA)
504 Loan Program provides long-term,
subordinated, fixed-rate financing for fixed
assets, including machinery and equipment with
a life of 10 or more years or real estate loans
with a maturity of 20 years.
ELIGIBLE APPLICANTS
The program serves healthy, expanding
businesses with a net worth of less than $15
million and average net profits of less than $5
million after taxes over the past two years.
PROGRAM BENEFITS/ELIGIBLE USES
Assets appropriate for finance under the 504
program include land and buildings, building
renovation and machinery and equipment.
FUNDING LIMITS
Funded projects usually range between
$500,000 and $5 million. The 504 loan can be
made for a maximum of $5 million, which can
cover up to 40 percent of a project’s cost and
works in partnership with local financing
institutions. One job should be created or
retained for every $65,000 loaned or the project
should meet another public policy goal, such as
rural development. Projects meeting certain
public policy goals may warrant a loan for up to
$5.5 million.
APPLICATION/APPROVAL
PROCEDURE
A state-funded network of Kansas Certified
Development Companies (CDCs) assists with
the preparation of the application and originates
and services the subordinated loan. Other
programs may be used in conjunction with 504
loans to provide working capital or fixed-asset
financing for larger projects.
CONTACT
Montgomery County Action Council
Aaron Heckman
115 S. 6th St.
Independence, KS 67301
Phone: 620-331-3830
Fax: 620-331-3834
Email: [email protected]
Website: www.actioncouncil.com
Craig VanWey
Southeast Regional Project Manager
Business and Community Development Div.
Kansas Department of Commerce 1501 South Joplin St. – Shirk Hall
Pittsburg, KS 66762
Phone: (785) 633-8407
www.kansascommerce.com
Worker Training Incentives
67
Worker Training Incentives Kansas Industrial Training Program (KIT) & Kansas Industrial
Retraining Program (KIR)
Workforce Aligned with Industry Demand (Workforce AID) Program
Worker Training Incentives
68
KANSAS INDUSTRIAL TRAINING (KIT) & KANSAS INDUSTRIAL RETRAINING (KIR) PROGRAMS
PURPOSE
The Department of Commerce has two
workforce training programs to offset a
company’s training costs. Companies creating
new jobs may qualify for Kansas Industrial
Training (KIT) assistance. Eligibility for the
program depends on the number of jobs created
and the corresponding wages. We also have the
Kansas Industrial Retraining (KIR) program to
retrain a Kansas company’s existing workforce
on new technology or production activities.
Projects involving a Kansas Basic Industry,
which includes manufacturing, distribution or
regional/national service facilities, may qualify
for these programs. Both of these programs offer
direct financial assistance to pay a negotiated
portion of the costs to train a company’s
employees. Companies may apply the
assistance toward items such as instructors’
salaries; video development; textbooks and
training manuals; supplies and materials;
curriculum planning and development and
minor training facilities.
ELIGIBILITY CRITERIA
Average annual wage for trainees must meet
or exceed the county median wage for
business/project location.
Company must make health care available to
its employees and the Plan must include the
following: hospital care; physician care;
mental health care; substance abuse
treatment; pre-natal & post-natal care; and
prescription drug coverage.
KIR: Maximum funding for a training
project is 50% of total costs, requires dollar-
for-dollar match from company.
KIR: Companies must show that they are
restructuring their business or retraining
their current workforce due to one or more
of the following: Incorporation of existing
technology; Development & incorporation
of new technology; Diversification of
production; Development & implementation
of new production.
Companies must submit a KIT or KIR
application prior to or concurrent with the
beginning of their hiring phase.
PROGRAM BENEFITS/ELIGIBLE USES
Provides workforce training funds to
companies to help offset costs of training net
new employees.
Maximum award per trainee is $2,000;
however, the average award is typically
$300 to $500 per trainee.
Wide range of eligible costs is allowed (i.e.
instructors’ salaries/fees, training
curriculum/manuals).
CONTACT
Montgomery County Action Council
Aaron Heckman
115 S. 6th St.
Independence, KS 67301
Phone: 620-331-3830
Fax: 620-331-3834
Email: [email protected]
Website: www.actioncouncil.com
Craig VanWey
Southeast Regional Project Manager
Business and Community Development Div.
Kansas Department of Commerce 1501 South Joplin St. – Shirk Hall
Pittsburg, KS 66762
Phone: (785) 633-8407
www.kansascommerce.com
Worker Training Incentives
69
WORKFORCE ALIGNED WITH INDUSTRY DEMAND (WORKFORCE AID)
PURPOSE
The Workforce Aligned with Industry Demand
(Workforce AID) training program will provide
intensive technology training for workers and
link them to industry partners seeking to hire
welders or machinists. The Kansas Department
of Commerce is implementing Workforce AID
pilot training projects around the state to align
workforce shortfalls with industry
demand. Students, who qualify through
KANSASWORKS, will receive a full
scholarship from the Department of Commerce
to complete the program.
ELIGIBLE APPLICANTS
Pre-assessment tests and registration with
KANSASWORKS is required before
enrollment. There will be no cost to
students. Students will attend training Monday
through Friday from 8 a.m. – 4:30 p.m.
PROGRAM BENEFITS/ELIGIBLE USES
Welding Program: CCC will conduct a 6-week
training program called WELD (Work-ready
Engaged Leaders in Demand). Successful
candidates of the WELD program will learn soft
skills; basic computer, English and math skills;
and basic welding skills through classroom
lecture, field trips and hands-on
activities. Students will receive their American
Welders Society (AWS) – Gas Metal Arc
Welding (GMAW) Certification and their
AWS-Fluxed Cored Arc Welding (FCAW)
Certification and OSHA 10 certifications upon
successful completion of the training.
The curriculum for the WELD program was
developed under the guidance of representatives
from local industry such as Jensen International,
Inc., M&M Engineered Products, Watco, Tank
Connection, and CST Industries.
Students will have job shadowing opportunities
and will be guaranteed an interview with local
industry. Welders with local industry can earn
$10 to $18 per hour plus benefits.
Machinists Program: CCC will conduct a 6-
week training program called Fast Industry
Ready Skills Training (CCC-
FIRST). Successful candidates of the CCC-
FIRST program will learn soft skills; basic
computer, English and math skills; and basic
manufacturing skills through classroom lecture,
field trips and hands-on activities. Students will
receive their National Institute of Metalworking
Skills (NIMS) Level 1 and OSHA 10
certifications upon successful completion of the
training.
The curriculum for the CCC-FIRST program
was developed under the guidance of
representatives from local industry such as
Cessna Aircraft Independence, Jensen
International, Inc., Spears Manufacturing,
Charloma, Inc., M&M Engineered Products and
Parmac LLC.
Students will have job shadowing opportunities
and will be guaranteed an interview with local
industry. Machinists with local industry can
earn up to $18 per hour plus benefits.
FUNDING LIMITS
This program was implemented for the summer
of 2014. Future programming is dependent
upon future funding from the State of Kansas
or Coffeyville Community College. If you are
interested in this program, please contact CCC
at the contact information below.
CONTACT
Coffeyville Community College
Yvonne Hull, Program Manager
Phone: (620) 252-7550 Ext. 27
Email: [email protected]
Bond Financing Programs
70
Bond Financing Programs
Sales Tax Revenue Bonds (STAR Bonds)
Industrial Revenue Bonds (IRB)
Kansas Private Activity Bond (PAB)
Bond Financing Programs
71
SALES TAX REVENUE (STAR) BONDS
PURPOSE
STAR bonds provide Kansas municipalities the
opportunity to issue bonds to finance the
development of major commercial
entertainment and tourism areas and use City
and State sales tax revenue generated by the
development to pay off the bonds. In order to be
considered a major commercial entertainment
and tourism area, a proposed project must be
capable of being characterized as a statewide
and regional destination, and include a high
quality innovative entertainment and tourism
attraction, containing unique features which will
increase tourism, generate significant positive
and diverse economic and fiscal impacts and be
capable of sustainable development over time.
AUTHORIZATION
Established pursuant to K.S.A. 2012 Supp. 12-
17,165, and amendments thereto.
ELIGIBILITY CRITERIA
The following criteria will be evaluated when
considering the tourism potential of a proposed
project, although the Secretary retains discretion
to make exceptions as he may deem appropriate:
1. Visitation:
a. Out-of-state visitation from multiple
states should represent a significant
portion of total annual visitation to be
considered a major, unique, destination
attraction. For purposes of this
subsection 20% shall be considered a
significant portion.
b. A significant portion of total annual
visitation should be drawn from greater
than 100 miles distant from the
attraction community. For purposes of
this subsection 30% shall be considered
a significant portion.
c. Total annual visitation should compare
very favorably to existing attractions in
the state, as well as to comparable
attractions and markets elsewhere
2. Economic impact:
a. Direct expenditures: visitor spending
that directly supports the jobs and
incomes of people and firms that deal
directly with visitors.
b. Indirect expenditures: changes in sales,
incomes or jobs in regional sectors that
supply goods and services in support of
“direct expenditure” entities.
c. Induced expenditures: increased sales
within the region from the household
spending of the income earned in the
“direct” and “indirect” sectors.
d. Environmental effects: changes in
regional quality-of-life indicators as a
result of tourism development that
impact other sectors.
e. Enabling effects: increasing the ability
to attract compatible industries based
upon all of the above.
f. Direct job creation: the total number of
jobs (distinguished as Full-Time or
Part-Time) supported by the target
attraction.
3. The unique quality of the project, relative
to:
a. The national destination attraction
market, and/or
b. A defined regional (multi-state) market
area, and/or
c. The Kansas destination attraction
market, and/or
d. The ability of the proposed attraction to
leverage or utilize the nature, culture or
heritage that is unique to Kansas, and/or
e. The ability of the proposed attraction to
capture for Kansas a valuable, national
market brand identity (i.e. sports
organization, consumer product brand,
entertainment brand, etc.)
4. The ability of the project (all things being
equal) to capture sufficient market share
to:
a. Remain profitable past the term of
Bond Financing Programs
72
repayment
b. Maintain status as a significant market
and travel decision driver
5. Integration and collaboration with other
resources and/or businesses, as determined
by:
a. Creation of overnight stays, and/or
b. Collaboration/competition with other
available retail and destination
experiences, and/or
c. The ability of the proposed attraction to
leverage and utilize the nature, culture
or heritage that is unique to Kansas,
and/or
d. Short and long-term marketing plans,
with emphasis upon cluster, niche and
cooperative marketing.
6. Quality of service and experience provided,
as measured against national consumer
standards for the specific target market.
7. Project accountability:
a. Any and all of the above should be
accountable and verifiable according to
best industry or comparative practices.
b. Methodologies should be transparent
and detailed.
c. Third-party verification, wherever
possible, is recommended.
ELIGIBLE USES
Historic Theaters – A district containing a
theater constructed prior to 1940 which was
constructed for the purpose of staging
motion pictures, vaudeville shows or
operas. The theater must be operated by a
nonprofit corporation and have been
designated by the state historic preservation
officer as eligible to be on the Kansas
Register of Historic Places or is a member
of the Kansas Historic Theatre Association.
Major Tourism Areas – For example, the
Kansas Speedway and Village West
development in Kansas City.
Major Motorsports Complex – For
example, the Heartland Park racetrack in
Topeka.
FUNDING LIMITS
STAR Bonds cannot finance more than 50% of
the total costs including all project costs and
any other costs related to the project. The
proceeds of such STAR bond financing my
only be used to pay for incurred project costs.
Cities and Counties of eligible STAR Bond
districts are able to receive revenue received
from any transient guest tax and state, county
and city sales and use taxes which are collected
from taxpayers doing business within that
portion of the city’s redevelopment district.
Special bond projects financed with STAR
bonds use 100% of local sales taxes collected in
the district, not just state sales, except for
amounts committed by prior election of the
voters or pledged toward repayment of
previously issued bonds.
Projects must be of regional significance with
at least $50 million in capital investment and
$50 million in projected gross annual sales
revenue. A project located outside of a
metropolitan statistical area may be approved
by the Secretary of Commerce after a
determination that the district is located within
an eligible area and the project would be of
regional or statewide importance, but does not
have a specific financial threshold.
APPLICATION/APPROVAL
PROCEDURE
Any city or county proposing to undertake a
STAR bond project, shall prepare a STAR bond
project plan in consultation with the planning
commission of the city, and in consultation with
the planning commission of the county, if any.
The project plan may be implemented in
separate development stages.
Any city or county proposing to undertake a
STAR bond project within a STAR bond project
district shall first prepare a feasibility study. The
feasibility study shall contain the following:
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73
1. Whether a STAR bond project's revenue and
tax increment revenue and other available
revenues are expected to exceed or be
sufficient to pay for the project costs;
2. The effect, if any, a STAR bond project will
have on any outstanding special obligation
bonds;
3. A statement of how the jobs and taxes
obtained from the STAR bond project will
contribute significantly to the economic
development of the state and region;
4. Visitation expectations;
5. The unique quality of the project;
6. Economic impact study;
7. Market study;
8. Market impact study;
9. Integration and collaboration with other
resources or businesses;
10. The quality of service and experience
provided, as measured against national
consumer standards for the specific target
market;
11. Project accountability, measured according
to best industry practices;
12. The expected return on state and local
investment that the project is anticipated to
produce;
13. A statement concerning whether a portion of
the local sales and use taxes are pledged to
other uses and are unavailable as revenue for
the STAR bond project. If a portion of local
sales and use taxes is so committed, the
applicant shall describe the following:
a. The percentage of city and county sales
and use taxes collected that are so
committed; and
b. The date or dates on which the city and
county sales and use taxes pledged to
other uses can be pledged for repayment
of bonds; and
14. An anticipated principal and interest
payment schedule on the bond issue.
If the City or County determines that the project
is feasible then the application should include:
1. A summary of the feasibility study
2. A reference to the district plan that identifies
the project area
3. A description and map of the project area to
be redeveloped;
4. The relocation assistance plan
5. A detailed description of the buildings and
facilities proposed to be constructed or
improved in such area; and
6. Any other information the governing body
of the city or county deems necessary to
advise the public of the intent of the project
plan.
This information will be prepared and adopted
as a resolution stating that the City or County is
considering the establishment of a STAR bond
project district. This resolution will give notice
of a public hearing, with detailed information
regarding the date, hour, and place of the
hearing for the public. The City or County will
then submit the full plan package of the
proposed STAR bond project district to the
Secretary of Commerce for a determination that
the district is an eligible project in an eligible
area. Upon the conclusion of the public hearing,
and a finding by the secretary that the proposed
project district is an eligible area, the governing
body of the municipality shall pass an ordinance
or resolution to create a STAR Bond District.
REPORTING REQUIREMENTS
A progress report must be submitted to the
Secretary of Commerce by October 1, of each
year of the STAR Bond project.
CONTACT
City of Coffeyville
Trisha Purdon, Economic Development
11 E. 2nd Street, P.O. Box 1629
Coffeyville, KS 67337
Phone: (620) 252-6171
Email: [email protected]
Bond Financing Programs
74
INDUSTRIAL REVENUE BONDS
PURPOSE
Industrial Revenue Bonds (IRBs) are among the
most popular and cost-effective methods of
financing up to 100 percent of a new or growing
business’ land, buildings and equipment. In
Kansas, IRBs are issued by cities, counties and
the Kansas Development Finance Authority.
Proceeds from the sale of the bonds to private
investors are made available to enable
creditworthy companies to purchase land and
pay the costs of constructing and equipping new
facilities or the costs of acquiring, remodeling
and expanding existing facilities.
One benefit of IRBs is eligibility for full or
partial property tax abatement for the financed
facilities for up to 10 years and a sales tax
exemption for labor and materials purchased for
new facilities. These benefits apply to both tax-
exempt and taxable bonds.
AUTHORIZATION
Issuance of IRBs by cities and counties is
governed by Section 12-1740 et seq. of the
Kansas Statutes Annotated. Kansas
Development Finance Authority bond issuances
are governed by Section 74-8901 et seq. Many
bond issuers also have their own policies and
regulations regarding issuance of IRBs and the
granting of property and sales tax exemptions
for the financed facilities.
HOW THE PROGRAM WORKS
In IRB financing, the bond issuer either directly
loans the bond proceeds to a private business or
acquires ownership of the property financed and
leases it to the business. The loan payments or
lease rentals are used to repay the bonds with
interest. Typically, in a lease structure, the
business is given an option to purchase the
property at the end of the lease term for a
nominal sum. Proceeds from the sale of the
bonds are placed in escrow with a bank and used
as directed by the business to pay eligible costs
of constructing, acquiring and installing the
facilities. The business may have up to three
years to spend the proceeds of tax-exempt bonds
on eligible property.
If IRBs are used to finance certain types of
facilities, interest payable to the owners of the
bonds is exempt from federal income tax. This
type of IRB is generally called a “tax-exempt”
bond. Interest payable on bonds issued to
finance other types of commercial facilities, or
to finance non-qualifying portions of an eligible
facility is subject to federal income taxation.
This type of IRB is generally called a “taxable”
bond. Interest payable on all IRBs is exempt
from Kansas income taxation. Because interest
received by owners of tax-exempt IRBs is not
subject to federal income taxation, the rate of
interest on such bonds may be as much as 2.0 to
2.5 percent (average annual interest cost) below
interest rates charged for a comparable taxable
bond or taxable conventional loan. In many
cases, IRBs afford long-term, fixed-rate
financing not otherwise available for a business’
capital investments. Adjustable rate financing is
also available to businesses that are willing to
risk exposure to fluctuating (and potentially
higher) interest rates.
ELIGIBLE APPLICANTS
Under current federal tax law, specific projects
eligible for tax-exempt financing include
manufacturing facilities; airports, docks and
wharves; mass commuting facilities; certain
facilities for furnishing water, sewage and solid
waste disposal; qualified residential projects;
local district heating and cooling facilities;
facilities furnishing electricity or gas on a local
basis; high-speed inter-city rail facilities and
certain hazardous waste disposal facilities. The
use of tax-exempt bonds for manufacturing
continues to be subject to restrictions as to the
size of the financing, what may be purchased
with the bond proceeds and the amount of
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75
issuance costs that may be paid from bond
proceeds.
Under Kansas law, taxable bonds may be issued
for agricultural, commercial, hospital,
industrial, natural resources, recreational
development and manufacturing.
CUSTOMIZED LEASE AGREEMENT
Under a typical IRB issued by a city or county,
a company enters into a lease of the facility from
the bond issuer (the Kansas city or county where
the financed facility is located). The rental
payments are used to pay the principal and
interest to the bondholders. When all bonds have
been paid, the company may exercise an option
to purchase the project for a nominal price. The
bonds are not general obligations of the issuer,
payable from taxation; rather, they are sold on
the strength of the company’s ability to pay
principal and interest when due.
The basic security agreement for bondholders is
a net-net-net lease. The lease is a company’s
unconditional obligation to pay the bonds and
interest through specified payments throughout
the term of the lease. Because the financing is a
lease/purchase, the company can take advantage
of applicable depreciation guidelines, receive
available tax credits and deduct interest
payments as a business expense. The bond
issuer does not exercise control over any aspect
of the building’s construction or the company’s
operations. During the term of the bond issue
and within specified limits, a company may
make structural changes to the building, replace
equipment and machinery and even sell portions
of the land no longer needed.
Most bonds are structured to be repaid over 10
to 15 years. Principal repayment terms are
flexible and can be structured to meet your
company’s specific cash flow needs.
Availability of bond financing will depend
entirely on the creditworthiness of your
company, as determined by the prospective
purchaser of the bonds.
PROPERTY & SALES TAX EXEMPTION
Whether your property is financed through tax-
exempt or taxable IRBs, Kansas law (K.S.A. 79-
201a) permits exemptions for your project from
ad valorem (real and personal) property taxation
for up to 10 years, commencing with the year
after the year the bonds are issued. Cities and
counties often require that all or a portion of the
abated taxes be made available to local taxing
jurisdictions in the form of payments in lieu of
taxes. However, nearly every IRB issuer will
provide property tax abatements to your
company as an additional incentive to locate in
the community. Unlike real property and real
property improvements, business personal
property acquired after July 1, 2006, is not
subject to ad valorem personal property tax.
Statute K.S.A. 79-3606 exempts the cost of
building material and labor, as well as fixed
items of machinery and equipment, from state
and local sales taxes.
APPLICATION/APPROVAL
PROCEDURE
The bond issuance process can take as little as
60 days and generally follows these steps:
Select a bond attorney, an underwriter or
other bond purchaser and secure an option to
purchase a building site.
Apply to the city or county or Kansas
Development Finance Authority for an IRB
issue.
The governing body adopts a resolution of
its intent to issue bonds for the company.
For a project qualifying for tax-exempt
bonds, the issuer notifies the Kansas
Department of Commerce of its adoption of
the resolution of intent and files its
application for private activity bond
allocation.
Negotiate the terms and conditions of the
bonds and the financing with a bond
underwriter or other bond purchaser (such as
a commercial bank) and prepare any
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76
required bond-offering document.
If an ad valorem tax exemption is offered by
the issuer, the local school districts and city
or county government are notified as
applicable.
The issuer holds a public hearing concerning
the bond issue and the granting of a property
exemption, if applicable.
A bond attorney drafts the lease agreement,
the indenture of trust, the bond ordinance
and the company’s guarantee agreement.
The governing body adopts the bond
ordinance.
An IRB notice is filed with the Kansas Court
of Tax Appeals (COTA) at least seven days
prior to issuance of the bonds.
The basic documents are executed (signed)
by the issuer and the company.
The bond closing is held and funds are paid
by the underwriter or the purchaser against
the delivery of the bonds.
Proceeds are deposited into an account
maintained by the trustee to be spent on the
project as directed by the company.
The bond attorney notifies COTA within 15
days of issuance that the bond issue has been
closed.
SPECIAL PROGRAM REQUIREMENTS
A bond issue can provide a manufacturing
company with up to $1 million of tax-exempt
bonds for a qualifying project, regardless of
project size. A maximum of $10 million of tax-
exempt IRBs can be issued for a manufacturing
project, as long as a company’s total capital
expenditures at the project location do not
exceed $20 million for a period of three years
before and after the bond issue, including the
amount of the bonds issued. If the $20 million
limit is exceeded during the total six-year time
frame, either by issuing more than $10 million
in bonds or by exceeding the $20 million capital
expenditures limitation, the tax-exempt status is
forfeited and the company must redeem the
bonds at a premium.
Despite the size restrictions on tax-exempt IRB-
financed projects, advantages may still accrue to
projects requiring in excess of $10 million. For
example, a $15 million project could combine a
$10 million tax-exempt bond issue with a $5
million taxable bond issue.
The federal government has placed an annual
limit on the amount of tax-exempt IRBs that
each state can issue. This limitation is called a
“volume cap.” An allocation of volume cap
must be obtained for bonds for most privately
owned, qualifying facilities. In Kansas, volume
cap is allocated by the Secretary of Commerce.
Bonds for government-owned solid waste
disposal facilities, airports, docks or wharves are
not subject to the state volume cap.
A company may not have more than $40 million
of tax-exempt IRBs outstanding, nationwide, at
any one time. For this purpose, a company is
defined as that entity that ultimately benefits
from the tax-exempt bonds.
CONTACT
City of Coffeyville
Trisha Purdon, Economic Development
11 E. 2nd Street, P.O. Box 1629
Coffeyville, KS 67337
Phone: (620) 252-6171
Email: [email protected]
Website: www.coffeyville.com
Craig VanWey
Southeast Regional Project Manager
Business and Community Development Div.
Kansas Department of Commerce
1501 South Joplin St. – Shirk Hall
Pittsburg, KS 66762
Phone: (785) 633-8407
www.kansascommerce.com
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77
KANSAS PRIVATE ACTIVITY BOND (PAB)
PURPOSE
Tax-Exempt Bond financing is available
through the State's Private Activity Bond (PAB)
authority. The federal government empowers
the State to allocate $239 million in PABs. The
PAB is designed to provide local units of
government the ability to issue tax-exempt
bonds for a number of purposes.
HOW IT WORKS
At least 95 percent of the net proceeds from the
bonds must be used to finance a "qualified
development." If 50 percent or more of a
development’s aggregate basis of buildings and
land are financed with the bonds, a four percent
annual Housing Tax Credit may be received on
the qualified basis of the development. This tax
credit is similar, but in addition to, the nine
percent Housing Tax Credit.
If Housing Tax Credits are used with the tax-
exempt financing, the rules and regulations of
that program apply. At least 20 percent of the
units must be set aside for residents who earn 50
percent or less of the area median gross income
or 40 percent of the units must be set aside for
residents who earn 60 percent or less of the area
median gross income.
ELIGIBLE APPLICANTS
For-profit and non-profit developers and
businesses are eligible to apply.
ELIGIBILITY CRITERIA
The PAB is designed to provide local units of
government the ability to issue tax-exempt
bonds for a number of purposes including, but
not limited to:
Facility and equipment financing for
qualified manufacturers and processors
Beginning Farmers Program
Waste treatment facilities
Mortgage Credit Certificates (MCC)
Mortgage Revenue Bonds (MRB)
Financing for residential rental
developments.
APPLICATION/APPROVAL
PROCEDURE
The PAB Program has an open funding cycle
beginning January 1 of each year. Applicants
must provide a bond inducement resolution and
an application for the PAB allocation.
CONTACT
Montgomery County Action Council
Aaron Heckman
115 S. 6th St.
Independence, KS 67301
Phone: 620-331-3830
Fax: 620-331-3834
Email: [email protected]
Website: www.actioncouncil.com
Kansas Housing Resources Corporation
Fred Bentley
Housing Director
Phone: (785)217-2029
Fax: (785) 232-8084
Website: www.kshousingcorp.org
Community Development Block Grant Programs
78
Community Development Block Grant Programs
Small Cities CDBG Economic Development Program
Community Development Block Grant Programs
79
SMALL CITIES CDBG ECONOMIC DEVELOPMENT PROGRAM
PURPOSE
The Small Cities Community Development
Block Grant (CDBG) economic development
program is a source of financing for companies
that are expanding an existing facility or starting
a new operation in the non-metropolitan areas of
Kansas. The maximum amount of funds
available is $750,000 per project.
HOW THE PROGRAM WORKS
There are two parts to the program: business
finance and infrastructure. Under the business
finance component, funds are available for
working capital, machinery and equipment and
real property. The interest rate is currently set at
four percent. The term of the loan is based on
the class of the asset being financed. The
working capital loan has a term of five years,
machinery and equipment 10 years and real
property 15 years.
Under the infrastructure component, funding is
available for water lines, sewer lines, roads, rail
spurs and pre-treatment facilities. Infrastructure
funding requires that 25 percent of the funds be
paid back over a 10-year period at a rate of zero
percent. This is accomplished through a special
assessment placed on the real property.
ELIGIBLE APPLICANTS
In order to obtain the funds, the city or county
governing body applies on behalf of the private
business.
FUNDING LIMITS
There is a maximum award of $750,000, or one
full time job per $35,000 awarded by the
program. At least 51 percent of the jobs
created or retained must meet HUD’s low- and
moderate-income (LMI) test, which is based on
median family income in the county in which
the project is located.
APPLICATION/APPROVAL
PROCEDURE
Applications are accepted from January 1
through December 10. Contact the Department
of Commerce representative listed below for
additional information regarding the program.
CONTACT
City of Coffeyville
Trisha Purdon, Economic Development
11 E. 2nd Street, P.O. Box 1629
Coffeyville, KS 67337
Phone: (620) 252-6171
Email: [email protected]
Website: www.coffeyville.com
Craig VanWey
Southeast Regional Project Manager
Business and Community Development Div.
Kansas Department of Commerce 1501 South Joplin St. – Shirk Hall
Pittsburg, KS 66762
Phone: (785) 633-8407
www.kansascommerce.com
Housing Programs
80
Housing Programs
Infill Development Grant
Minor Home Repair Program
Distressed Property Reinvestment Program
Demolition Grant Program
Moderate Income Housing Program (MIH)
First Time Homebuyer Program – KHRC
HOME Rental Development Program
Low-Income Housing Tax Credit (LIHTC) Program
Weatherization Assistance Program
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81
INFILL DEVELOPMENT GRANT
PURPOSE
The City of Coffeyville’s Home Infill program
helps promote the revitalization of Coffeyville’s
neighborhoods and communities along with
increasing the rate of homeownership by
providing affordable homes to local families.
AUTHORIZATION
The City of Coffeyville is the administrator of
this program. Budgetary approval for the
program rests with the authority of the City
Commission, while authorization for program
implementation is the responsibility of assigned
staff, consistent with existing economic
development policies, programs, and
procedures.
ELIGIBLE AREAS
This program is targeted for neighborhoods
identified in the Neighborhood Reinvestment
Zones of Coffeyville. Specifically identified
neighborhoods in these districts will be eligible
for higher incentives, on a case by case basis.
ELIGIBLE APPLICANTS
This program is targeted for both builders and
for homeowners who would like a custom home
built in Coffeyville in the reinvestment zone.
Homeowners must occupy the home and cannot
rent out the property. Builders must build the
home, with the intention to sell rather than lease.
Homes built under this program are not eligible
to be rental housing.
ELIGIBILITY CRITERIA
Builder Requirements:
Must be owner occupied housing.
Home must be new construction
Must be built in compliance with energy
efficiency standards and all City codes and
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82
requirements.
Must meet the needs of Coffeyville
homebuyers with a minimum bedroom size
of 2 bedrooms and one and a half baths.
Must be compatible with the character and
architectural style of the surrounding
neighborhood.
If infill development occurs in a commercial
zone, mixed use development is encouraged.
Setback requirement is flexible, but ideally
builders should use the average of the
setbacks of the adjacent or abutting lots.
Buyer Eligibility
Must qualify for a mortgage
Provide a down payment of at least $500.
Provide identification of all home occupants
Complete mortgage application
Must occupy home, rental of the unit is not
allowed under this program.
May not own more than one residential
property at a time.
PROGRAM BENEFITS/ELIGIBLE USES
Builder Assistance
Increased flexibility regarding property
setbacks, utility connections, permit fees,
and other City determined costs associated
with building in Coffeyville.
Utility setup grants are available to offset
costs of setting up utilities for new infill
development
Property tax abatements with an incentive
for longer abatements for more than one
infill development project, which can be
passed onto home buyers, thus providing an
extra sales incentive for builders.
Property tax abatement will depend on the
number of homes built.
o 1 Home – 1 Year Tax Abatement
o 2 Homes – 2 Year Tax Abatement
o 3 Homes – 3 Year Tax Abatement
o 4 Homes – 4 Year Tax Abatement
o 5 + Homes – 5 Year Tax abatement with
potential for longer terms depending on
the number of homes constructed.
Buyer Assistance
Potentially reduced down payment
requirements
Property Tax abatements that can last up to
5 years depending on the number of homes
that the developer builds in the
Reinvestment Zone.
FUNDING LIMITS
Funding is limited by the number of properties
that the City can provide to a builder in the
Reinvestment Zone. The City will provide these
properties at no cost to the developer, if the
developer agrees to construct the properties
within 2 years of the transfer of ownership.
APPLICATION/APPROVAL
PROCEDURE
Developers may contact the City Manager to
discuss potential development plans and apply
for vacant lots for development. Buyers will
need to contact the builder/realtor representing a
property, or the City Clerk of the City of
Coffeyville for more information.
SPECIAL PROGRAM REQUIREMENTS
The City will provide vacant properties to a
developer at no charge. However, if the
property owner has not started or completed
construction on this donated lot within 24
months of the transfer of the property, the City
can revoke the ownership of the parcel and
resume ownership of the vacant lot.
CONTACT
City of Coffeyville
Trisha Purdon, Economic Development
11 E. 2nd Street, P.O. Box 1629
Coffeyville, KS 67337
Phone: (620) 252-6171
Email: [email protected]
Housing Programs
83
TARGETED MINOR HOME REPAIR PROGRAM
PURPOSE
The Targeted Minor Home Repair Program
assists homeowners who live in targeted areas of
Coffeyville that have been identified as either in
the Neighborhood Revitalization District, or a
Neighborhood Reinvestment Zone.
Homeowners would receive home repair
assistance such as plumbing, electrical system
service, roofing, furnace/air conditioning
service and replacements.
AUTHORIZATION
The City of Coffeyville is the administrator of
this program. Budgetary approval for the
program rests with the authority of the City
Commission, while authorization for program
implementation is the responsibility of assigned
staff, consistent with existing economic
development policies, programs, and
procedures.
ELIGIBLE AREAS
This program is targeted for neighborhoods
identified in the Neighborhood Revitalization
Districts (see page 4) or Neighborhood
Reinvestment Zones of Coffeyville. Homes
outside of these districts, with families that meet
the applicant eligibility requirements may be
considered on a case by case basis.
ELIGIBLE APPLICANTS
Applicants must own and reside in the property
to be repaired, cannot own more than one
residential property, and cannot have received
home repair assistance from the City in the last
five years. Eligible applications may become
ineligible if conditions of the home are
determined to be beyond the scope of the
program guidelines. Applicants must meet Low
Income Guidelines established by HUD to be
eligible for this program.
Low
(80%)
Income
Limits
1
Person
2
Person
3
Person
4
Person
$30,950 $35,350 $39,750 $44,150
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84
PROGRAM BENEFITS/ELIGIBLE USES
Examples of work done as part of this program
include the following:
Plumbing – main water line, which may
include branch lines and water heaters.
Plumbing – sewer mains, which may include
branch lines.
Electrical systems – service entrance and
main electrical panels, which may include
branch circuits.
Furnace/Air Conditioners – Repairs and
replacement, which may include ductwork
Roofing – May include full tear off and
replacement, or leak repair.
Window replacement due to breaks or
damage to windows.
Other uses on a case by case basis will be
considered, but must typically be for costs
exceeding $1000, or for needed safety
repairs not covered under home owners
insurance programs.
FUNDING LIMITS
A home owner is only eligible for one project
every five years. Grant funding is limited to
projects that are more than $1000, and grant
funds are limited to $7,500 per project.
APPLICATION/APPROVAL
PROCEDURE
To check on eligibility and to get an application,
call the City Manager’s office at 620-252-6171.
REPORTING REQUIREMENTS
All repairs must be done by a licensed
contractor, and all receipts and photos of
completed work must be submitted to receive
payment for the project.
CONTACT
City of Coffeyville
Trisha Purdon, Economic Development
11 E. 2nd Street, P.O. Box 1629
Coffeyville, KS 67337
Phone: (620) 252-6171
Email: [email protected]
Housing Programs
85
DISTRESSED PROPERTY REINVESTMENT PROGRAM
PURPOSE
The Distressed Property Reinvestment Program
was established in Coffeyville in 2014 with
program funding provided by the City of
Coffeyville, with additional public and private
sector funding when available. The goal of the
program is to assist individuals and families in
achieving the “American Dream” of home
ownership through loan guarantees that
facilitate the renovation/rehabilitation of
distressed properties that would otherwise be
potential candidates for demolition. Through
bank financed “sweat-equity” or small
contractor improvement projects, the program is
designed to encourage reinvestment in and
preservation of target neighborhoods and the
existing housing stock.
AUTHORIZATION
The City of Coffeyville is the administrator of
this loan guarantee program and where
applicable will facilitate the implementation of
the program through the acquisition of eligible
houses for the program. Budgetary approval for
the program rests with the authority of the City
Commission, while authorization for program
implementation is the responsibility of assigned
staff.
ELIGIBLE AREAS
The program is City-wide, with preference
given to homes in a Neighborhood
Reinvestment or Revitalization Zone.
ELIGIBLE APPLICANTS
Applicants must complete an application
process which is similar to one required by any
lender. Home buyers must live in the property.
This program is not intended to be used to
renovate homes for rental purposes, unless such
property is intended for multi-family housing.
ELIGIBILITY CRITERIA
Property may be designated as blighted
by the City Code Enforcement
Department; Or
Property is located in the neighborhood
revitalization zone district or a
Neighborhood Reinvestment Zone;
Property cannot already have been
designated to be demolished through the
municipal court system.
PROGRAM BENEFITS/ELIGIBLE USES
Eligible uses of guaranteed loan proceeds
include but are not limited to:
Repair and replacement of windows and
doors
Roof repair and replacement of roof
covering
Exterior paint
Foundation Repair
Drywall, interior paint and finishing
Cabinetry
Flooring
Electrical
Plumbing
Repair to porches and steps
Repair to exterior foundation walls
Exterior walls and trim
Flashing /guttering
Private sanitary sewer repairs
FUNDING LIMITS
Loan guarantees are limited to $40,000 per
single family owner occupied structure.
Program funding on an annual basis is limited to
funding availability and outstanding loan
guarantee liabilities.
APPLICATION/APPROVAL
PROCEDURE
Home buyers should submit an application to
the City Clerk’s office at the City of Coffeyville.
Inquiries regarding blighted structures may be
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86
sent to the Code Enforcement Department at the
Coffeyville Fire Department.
REPORTING REQUIREMENTS
Project must be completed within 2 years of
purchase. Annual reports must be submitted to
the Code Enforcement Department with an
itemized list of projects and expenses that have
been completed, as well as a timeline of future
projects to be completed. Must be off of
blighted list within 1 year of purchase price or
property would be subject to fines/demolition if
progress has not been made on the property in
this time frame.
SPECIAL PROGRAM REQUIREMENTS
A one-time fee of the greater amount of $250 or
one percent (1%) of the guaranteed amount,
payable from loan proceeds, is required for
program administration/participation. Check
issuance from the lending institution shall be
coordinated through the program administrator
and assigned staff. Where applicable, work
completed must be in compliance with existing
building codes and inspected by appropriate
City inspectors. All contractors must be
licensed and meet all requirements necessary to
perform work in the City of Coffeyville.
CONTACT
City of Coffeyville
Trisha Purdon, Economic Development
11 E. 2nd Street, P.O. Box 1629
Coffeyville, KS 67337
Phone: (620) 252-6171
Email: [email protected]
Housing Programs
87
DEMOLITION GRANT PROGRAM
PURPOSE
The purpose of this program is to assist property
owners with the costs of demolishing vacant,
dilapidated, unfit, and unsafe residential or
commercial structures within the City limits of
Coffeyville. The City will participate jointly
with property owners on a 50/50 shared cost
basis, excluding waived landfill fees, with a
maximum of $3,000 paid by the City.
The program will improve the overall
appearance of the community, restore
neighborhood pride, better the quality of life for
residents and create a sense of public equity by
encouraging reinvestment in distressed areas
which will help stabilize and improve a
declining tax base.
AUTHORIZATION
The City of Coffeyville is the administrator of
this program and where applicable will facilitate
the implementation of the program through the
identification of eligible houses eligible for the
program. Budgetary approval for the program
rests with the authority of the City Commission,
while authorization for program implementation
is the responsibility of assigned staff.
ELIGIBLE AREAS
This program is city-wide and can be utilized on
residential or commercial properties, as well as
outbuildings or other structures deemed
inhabitable, dilapidated, unfit, or unsafe by the
City Codes Enforcement Department.
Demolition of residences within the environs of
a listed historic structure or historic district will
need to be reviewed through the State Historical
Society procedures. No demolition permit shall
be issued until all necessary approvals are
received.
ELIGIBLE APPLICANTS
Applicants who own real property on which
a residential building is located, which is
deemed by the City to be unfit or unsafe for
human use or habitation
Property owners who wish to voluntarily
demolish an unsafe or unfit residential
structure
Property owners of unsafe or unfit
residential structures who wish to relinquish
ownership of the property by providing to
the City of Coffeyville a clear title, title
insurance, deed and current tax statement
showing that all taxes are paid on the
property. Applicants that provide prove that
their income is at or below the federal
guidelines in Kansas for poverty shall be
eligible to be reimbursed for the cost of
providing title insurance. The cost shall not
be included in the maximum cost paid by the
City for demolition.
Owners of mobile homes who own the
property where the mobile home are set and
located.
Properties that are in receipt of fire lien
proceeds will not be eligible for this
program.
Properties with a mortgage or lien will be
considered ineligible unless the mortgage
company(s) or lien holder(s) provide a
signed consent approval or release of lien.
The City shall ask the mortgage company or
lien holder for approval.
ELIGIBILITY CRITERIA
All structures must be vacant, in a state of
disrepair, create a threat to the health, safety
and welfare of area residents, and have a
blighting influence on neighboring properties
of the City. The City may approve or deny an
application based on available budget, total
cost of demolition and location. All structures
must be inspected and determined to be in a
state of disrepair by the City Code
Enforcement Department prior to application
for the loan program.
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88
Eligible Structures:
Residential buildings, including the accessory
structures that are located on the same property
where the primary residential building is being
demolished are eligible. Mobile homes that are
owned by the owner of the land where the
mobile homes are located, including those that
are located within a manufactured home
subdivision district, are eligible. Some
commercial properties may be eligible, on a
case by case basis, but the funding for such
demolition may differ from residential
structures.
PROGRAM BENEFITS/ELIGIBLE USES
By participating in this program a property
owner will reduce the total amount owed on
their property taxes due to liens placed on the
property to pay for the costs of demolition of
the condemned property. By participating, the
City will be more willing to negotiate on other
fines/fees associated with the property so that
the property owner might be able to rebuild on
the lot for future development, rather than
leave it vacant. Property owners will also
maintain ownership of the property if they
participate in the grant program, whereas if the
property owner does not participate, the
ownership of the lot would revert to the City.
OPTIONAL PROPERTY OWNER LOAN
PROGRAM
The property owner applicant may apply for a
loan from the City to pay for their portion of
the demolition up to a maximum amount of
$3,000. The owner will sign a promissory note
for repayment of the loan secured with a
mortgage on the property. The loan will only
be in the amount of the owner’s portion of the
demolition fee, up to a maximum of $3,000.
Upon completion of the loan agreement, the
City will file a mortgage against the property
until the loan and monthly fees accrued are
paid in full. The maximum amount of time for
repayment is 5 years, however only the first 24
months of the loan will be eligible for a 0%
interest rate, as long as payments are received
on time. A $5 fee will be assessed and paid
each month after 24 months from the date of
the loan along with interest which will be
determined based on the current federal prime
rate. The loan and monthly fees accrued must
be repaid in full prior to the property being
transferred to another owner.
The City will forgive any remaining loan
amount on the property if a primary structure is
rebuilt within 2 years of the demolition of the
structure and all monthly payments are current.
Rebuilt shall be defined as a building permit
has been issued within 24 months of
demolition being completed. The City shall
not forgive the loan until such time as a
Certificate of Occupancy has been issued,
however, repayment to the City on the loan
shall be suspended while construction is
occurring. Construction shall be completed
within 6 months of the building being issued.
An extension of 6 months may be granted by
the City if necessary.
FUNDING LIMITS
Program funding will be available to property
owners on a 50/50 shared cost basis to assist in
the removal of the structures. The City will
further defray demolition expenses by waiving
landfill charges for disposing materials from
demolition of approved program properties.
On a case by case basis, some additional fees
and fines associated with the property may be
waived. This is primarily dependent upon the
ultimate use of the property once the structure
is demolished. If the property owner is willing
to rebuild on the lot within 2 years of
demolition, or is willing to donate the vacant
lot (if in a City Reinvestment Zone) to the City,
the City will be more likely to waive other
liens that may be on the property.
APPLICATION/APPROVAL
PROCEDURE
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89
To apply for this program, the property owners
must:
Prove taxes are current by providing a copy
of the most recent property tax receipt
showing the legal description and address
of the property to be demolished.
Provide a copy of the property warranty
deed or contract of sale and a signed
“Notice to Proceed” (Document provided
by the City)
Complete program application form and
$25 application fee.
The applicant shall be responsible for
identifying and contacting all parties with
an ownership, contractual or financial
relationship in the property
The property owner will participate on a
50/50 shared cost for demolition costs of
the first $6,000 in demolition fees and will
pay 100% of demolition costs in excess of
$6,000, with exceptions considered on a
case by case basis.
The applicant shall permit City
representatives, contractors, and sub-
contractors access to the property during
the workdays and at other reasonable times
to complete the required inspections and all
necessary work.
The applicant agrees to all conditions of the
Applicant Agreement (Provided by the
City) between the owner, the City, and the
demolition contractor.
City’s Participation:
The City will waive all demolition landfill
fees, plumbing permit fees, and building
permit fees in association with the
demolition project. Demolition costs will
include any associated costs for
environmental assessments to include
asbestos and/or lead paint requirements.
The City will participate on a 50/50 shared
cost basis, with a maximum cost to the city
of $3,000. The owner will pay all
remaining demolition costs on any project
over $6,000, unless extenuating
circumstances are negotiated prior to the
demolition of the property with the City,
and it is approved by the City Commission.
The City of Coffeyville MAY accept clear
title in lieu of demolition costs.
The city will provide a Notice to Proceed
form that must be signed by the owner
authorizing the City’s designated
demolition contractor to proceed with the
demolition work. The owner must remove
any and all possessions and items for
salvage prior to signing the Notice to
Proceed Form.
Bid letting and the award of the demolition
contract with be administered by the City.
Licensed demolition contractors and
plumbing contractors (sewer line is
required to be capped off) shall be required
to perform all work as described in the City
contract and comply with any demolition
ordinances.
Continued annual funding of the demolition
assistance program will be determined and
budgeted by the governing body.
CONTACT
City of Coffeyville
Trisha Purdon, Economic Development
11 E. 2nd Street, P.O. Box 1629
Coffeyville, KS 67337
Phone: (620) 252-6171
Email: [email protected]
Code Enforcement Department
Phone: (620) 252-6149
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MODERATE INCOME HOUSING PROGRAM - COFFEYVILLE
PURPOSE
In 2012, the Kansas Legislature approved $2
million to be deposited into the SHTF for the
purpose of administering and supporting
housing programs. KHRC supplemented the
new funding with $291,451 in existing SHTF
resources to create the Moderate Income
Housing (MIH) Program, an initiative serving
needs of individuals who cannot afford market-
rate housing, yet do not qualify for Federal
housing assistance. In 2013, the Legislature
allocated an additional $2 million in continued
support of MIH activities. The goal of the MIH
Program is to help cities and counties develop
housing and infrastructure in rural areas.
AUTHORIZATION
Montgomery County was awarded funding to
build 6 Moderate Income Homes in the City of
Coffeyville in 2013. Currently, the developer
selected for this project is waiting for
completion and sale of the homes constructed
in Independence before beginning construction
in Coffeyville.
ELIGIBLE AREAS
Moderate income properties must be built in
the city limits of Coffeyville.
ELIGIBLE APPLICANTS
The program serves moderate-income
individuals, with eligibility ranging from 60
percent to 150 percent of HUD's State Non-
Metro Area Medium Income and is adjusted
for family size. For instance, one person
earning $68,063 a year would be eligible to
live in housing funded by the MIH Program. A
family of eight earning less than $128,344
would also be eligible. Under the MIH
Program, moderate-income is defined as
$68,063 to $128,344 and is adjusted for family
size.
FUNDING LIMITS
Homes are typically priced at $125,000 to
140,000. Buyers must be able to secure a loan
for the purchase of the home as well as meet
the moderate income housing guidelines for
their family.
APPLICATION/APPROVAL
PROCEDURE
Homebuyers interested in the program should
contact the City of Coffeyville to let them
know they are interested in having a custom
home built. Applicants will be required to fill
out income verification documentation. If a
family is found to be eligible, the city will
work with the developer to begin construction
on the home.
CONTACT
City of Coffeyville
Trisha Purdon, Economic Development
11 E. 2nd Street, P.O. Box 1629
Coffeyville, KS 67337
Phone: (620) 252-6171
Email: [email protected]
Website: www.coffeyville.com
Kansas Housing Resources Corporation
Fred Bentley
Housing Director
Phone: (785)217-2029
Fax: (785) 232-8084
Website: www.kshousingcorp.org
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FIRST TIME HOMEBUYER PROGRAM - KHRC
PURPOSE
If down payment and closing costs are keeping
you from purchasing a home of your own, the
First Time Homebuyer Program may be able to
help. Eligible borrowers can use the forgivable
loan to greatly reduce the out-of-pocket
expenses associated with buying a home.
ELIGIBLE APPLICANTS
Income-eligible households that have not owned
a home in the past three years may apply for the
First Time Homebuyer Program (FTHB).
Review the income chart below to see if you
may be income eligible.
ELIGIBILITY CRITERIA 30% Limit 11600 13250 14900 16550
50% Limit 19350 22100 24850 27600
60% Limit 23220 26520 29820 33120
80% Limit 30950 35350 39750 44150
PROGRAM BENEFITS/ELIGIBLE USES
Approved applicants will receive a soft loan that
is forgiven over time. The loan may range from
15 to 20 percent of the purchase price of the
home, depending on your amount of income.
Buyers are required to make a minimum
investment of two percent of the sale
price. Participating lenders process the FTHB
paperwork along with the first mortgage loan
and then applies to the FTHB program for you.
APPLICATION/APPROVAL
PROCEDURE
Interested applicants may apply directly to
a participating lender. Participating lenders
assist applicants in completing the required
paperwork to apply for the
program. Applications are currently being
accepted, through a participating lender.
Local Participating Lenders:
CONTACT
City of Coffeyville
Trisha Purdon, Economic Development
11 E. 2nd Street, P.O. Box 1629
Coffeyville, KS 67337
Phone: (620) 252-6171
Email: [email protected]
Website: www.coffeyville.com
Kansas Housing Resources Corporation
Fred Bentley
Housing Director
Phone: (785)217-2029
Fax: (785) 232-8084
Website: www.kshousingcorp.org
Commercial Bank -
Parsons
James Jacquonot 620-421-1000
Commercial Bank -
Parsons
Ray Fees 620-421-1000
First Neodesha Bank Justin Callarman 620-325-2632
First Neodesha Bank Tyson Denton 620-325-2632
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HOME RENTAL DEVELOPMENT PROGRAM
PURPOSE
The HOME Rental Development Program,
funded through the Federal HOME Investment
Partnerships program, assists communities and
developers with increasing the supply of
affordable rental housing. The loans may be
used to acquire and rehabilitate, rehabilitate or
construct rental housing. The program helps
communities, via housing developers, respond
to housing issues and needs in underserved
areas.
AUTHORIZATION
At least 15% of the State's annual HOME
Investment Partnership Program funding is set
aside for Community Housing Development
Organizations (CHDOs). Nonprofits must meet
certain criteria to be considered a CHDO, as
defined by HOME program regulations.
ELIGIBLE APPLICANTS
The program helps communities, via housing
developers, respond to housing issues and needs
in underserved areas.
PROGRAM BENEFITS/ELIGIBLE USES
CHDOs and other housing developers obtain
funding to supplement a primary loan for the
development and, in the process, strengthen the
capacity of the organization. Communities
achieve added housing stock with an enhanced
tax base to further their economic and
community development efforts. The HOME
Rental Development Program is effective in
addressing some of the most difficult rental
housing development need that communities
have.
The loan allows the owner/developer to lessen
the amount of debt required to finance a
development, thus allowing rents to be lowered.
A certain percentage of units, equal to or greater
than the percentage of HOME funds to the total
development cost, are considered HOME units.
These units are required to be rented to
households who meet the income guidelines of
the program and the rents on these units must be
restricted.
FUNDING LIMITS
Funds are awarded on a competitive basis
annually and CHDOs may apply for an amount
up to $500,000.
SPECIAL PROGRAM REQUIREMENTS
In developments that contain four or fewer
HOME units, 100 percent of the HOME units
must be restricted to households at or below
60% of the area median income and utilize
the Low HOME rents. In developments with
five or more HOME units, 20 percent of the
units must be rented to households at or below
50 percent of the area median income. These
units must also have rents restricted to the Low
HOME rents. Of the remaining 80 percent, 70
percent (of the total) can be rented to those at or
below 60 percent of the area median income and
10 percent (of the total can be rented to those at
or below 80 percent of the area median income.
The rents of these units are restricted to the High
HOME rents.
CONTACT
City of Coffeyville
Trisha Purdon, Economic Development
11 E. 2nd Street, P.O. Box 1629
Coffeyville, KS 67337
Phone: (620) 252-6171
Email: [email protected]
Kansas Housing Resources Corporation
Fred Bentley
Housing Director
Phone: (785)217-2029
Fax: (785) 232-8084
Website: www.kshousingcorp.org
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LOW INCOME HOUSING TAX CREDIT (LIHTC)
PURPOSE
As part of the Tax Reform Act of 1986, the
United States Congress created the Low-Income
Housing Tax Credit (LIHTC) Program to
promote the development of affordable rental
housing for low-income individuals and
families. To date, it has been the most successful
rental housing production program in the nation,
creating thousands of residences with very
affordable rents. The housing tax credit, rather
than a direct subsidy, encourages investment of
private capital in the development of rental
housing by providing credits to offset an
investor's federal income tax liability.
AUTHORIZATION
Tax Reform Act of 1986
HOW DOES THE PROGRAM WORK?
Owners of tax credit properties are eligible to
take the federal tax credit each year for 10 years,
provided the property continues to operate in
compliance with federal guidelines. Excluding
land, the annual amount of the tax credit is
approximately 9% of the qualified cost of
building or rehabilitating the property.
In exchange for the financing provided through
the credit, owners agree to keep rents affordable
over a 30-year period for families with incomes
at or below 60 percent of the local median
income.
The property owner typically sells the tax
credits to a corporation or group of investors.
Currently the average rate per credit is 77 cents
on the dollar. The proceeds provide equity in the
development, which reduces the amount of debt
required to build the property, and therefore
reduces the monthly debt service and the
amount of rent income that is required.
ELIGIBLE APPLICANTS
Tax credit rents must be affordable to
households earning 60 percent or less of the
local median income. Residents are responsible
for their own rent payments, unless rent
subsidies are available from other
sources. KHRC is required by the Internal
Revenue Service to monitor tax credit properties
for the compliance period to ensure that rents
and resident’s incomes do not exceed federal
limits and that the properties are well
maintained.
FUNDING LIMITS
KHRC administers the LIHTC program on
behalf of the State of Kansas. The Corporation
allocates credits based upon selection criteria
and application ranking procedures set forth in
KHRC's housing allocation plan. In addition,
KHRC monitors tax credit properties during the
compliance period to ensure that rents and
residents’ incomes do not exceed program
limits, and that properties are well-maintained.
KHRC has authority to allocate approximately
$60 million of ten year credits each year.
APPLICATION/APPROVAL
PROCEDURE
KHRC evaluates housing tax credit applications
based on several characteristics, such as:
Site/Location
Development Design
Development Team
Targeting/Extended Use
Financial Characteristics
Federal regulations require KHRC to allocate
tax credits giving preference to proposals that:
Serve the lowest income tenants
Serve qualified tenants for the longest
periods
Contribute to a concerted Community
Revitalization Plan
Are intended for eventual tenant ownership
REPORTING REQUIREMENTS
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94
Owners of properties receiving tax credit
allocations must follow IRS rules and
regulations that oversee the program. Owners
are required to provide certain reports to KHRC
and maintain certain records for the agency’s
review. The tax credit program operates under a
Qualified Allocation Plan (QAP) which is
amended annually.
CONTACT
City of Coffeyville
Trisha Purdon, Economic Development
11 E. 2nd Street, P.O. Box 1629
Coffeyville, KS 67337
Phone: (620) 252-6171
Email: [email protected]
Kansas Housing Resources Corporation
Fred Bentley
Housing Director
611 S. Kansas Avenue, Suite 300
Topeka, KS 66603-3803
Phone: (785)217-2029
Fax: (785) 232-8084
Website: www.kshousingcorp.org
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WEATHERIZATION ASSISTANCE PROGRAM
PURPOSE
Weatherization improves heating efficiency and
fuel savings by ensuring your home holds in
heat and air-conditioning, while keeping hot and
cold air out. At NO CHARGE to the client,
income eligible families receive a
comprehensive home assessment which
includes repair or replacement of heating
systems, insulation and caulking.
ELIGIBLE APPLICANTS
Eligibility is based on household income
relative to federal low-income guidelines. If a
household contains a member who receives
Supplemental Security Income (SSI),
Temporary Assistance for Needy Families
(TANF) benefits or utility assistance from the
Low Income Energy Assistance Program
(LIEAP), the household is automatically
considered eligible for weatherization services.
PROGRAM BENEFITS/ELIGIBLE USES
Weatherization services may include:
Weather stripping
Caulking around doors and windows
Cleaning, testing, repairs or replacement of
refrigerators, heating and/or cooling systems
Adding insulation to walls, ceilings and
foundations
Infiltration reduction
FUNDING LIMITS
Is there a maximum award total or a total
program maximum? Are there matching
requirements, or other funding limitations?
APPLICATION/APPROVAL
PROCEDURE
To apply, contact the local weatherization
service provider listed below.
CONTACT
City of Coffeyville
Trisha Purdon, Economic Development
11 E. 2nd Street, P.O. Box 1629
Coffeyville, KS 67337
Phone: (620) 252-6171
Email: [email protected]
Southeast Kansas Community Action
Program
Phone: (620) 724-8204
Household Size
LIEAP Weatherization
130% Poverty
DOE Weatherization
200% Poverty
1 $15,171 $23,340
2 $20,449 $31,460
3 $25,727 $39,580
4 $31,005 $47,700
5 $36,283 $55,820
Entrepreneur Support Programs
96
Entrepreneur Support Programs
Innovation Growth Program
Entrepreneur Support Programs
97
INNOVATION GROWTH PROGRAM
PURPOSE
The Innovation Growth Program assists Kansas
entrepreneurs, universities and technology
companies by providing intellectual property,
technical expertise, research and other services
designed to help new and existing companies
grow and succeed through advancing
technology. While the program exists to help
entrepreneurs and companies, its ultimate goal
is to bring new technology jobs to the state of
Kansas.
PROGRAMS
Support for Early-Stage Technology
Companies
Innovation Growth Partners provide a range of
services that help accelerate the success of
innovative technology companies. These
services range from preparing entrepreneurs to
approach capital partners to forming joint
ventures and new companies around
technologies and expertise housed at state
universities.
Venture Capital and Angel Networks
There are several regional networks of venture
capital and angel investors dedicated to
identifying and funding promising start-up
business opportunities in Kansas.
The program plays a catalyst role in matching
private investment capital with high potential
start-up companies, through the facilitation of
Angel Networks and administration of Angel
Tax Credits. The Angel Networks provide
entrepreneurs and investors a forum to
collaborate. Members are accredited investors
experienced in funding and growing emerging
technology businesses in Kansas and
surrounding areas.
Kansas Angel Tax Credits
Kansas income tax credits are available to
individuals who provide seed-capital financing
for emerging Kansas businesses engaged in
development, implementation and
commercialization of innovative technologies,
products and services.
The Kansas Capital Multiplier Fund
A program that provides matching funds
through NetWork Kansas partners to eligible
businesses in communities across Kansas.
These are low-interest matching loan funds of
up to nine percent of private investment in a
project. Private investment includes new bank
loans, lines of credit, and equity investment.
Kansas Capital Multiplier Venture Fund Businesses can apply for matching equity of up
to nine percent of the private venture capital
invested. Private equity invested includes funds
invested by private equity firms and angel
investors. Businesses eligible include
technology and bioscience companies who are
working with university entrepreneurial centers,
university centers of excellence, and/or the
Kansas Bioscience Authority.
CONTACT
City of Coffeyville
Trisha Purdon, Economic Development
11 E. 2nd Street, P.O. Box 1629
Coffeyville, KS 67337
Phone: (620) 252-6171
Email: [email protected]
Website: www.coffeyville.com
Innovative Business Resource Center
Jim Correll
Executive Vice President
Phone: 620-332-5470
:
Other Development Programs
98
Other Development Programs
Template for Incentive Guidelines
Other Development Programs
99
TEMPLATE FOR INCENTIVE GUIDELINES
PURPOSE
Insert text describing general purpose of the
program.
AUTHORIZATION
What is the statute or ordinance number that
gives the authority for this program?
ELIGIBLE AREAS
Is this a statewide program? Is it limited to
brownfields, blighted areas, etc.?
ELIGIBLE APPLICANTS
Who can participate? Who must the applicant
be for the program?
ELIGIBILITY CRITERIA
Insert eligibility data here.
Insert eligibility data here.
Insert eligibility data here.
Insert eligibility data here.
PROGRAM BENEFITS/ELIGIBLE USES
What kind of financial assistance does this
program offer? Use bullets if necessary
Use bullets if there are more than one use
or benefit available
FUNDING LIMITS
Is there a maximum award total or a total
program maximum? Are there matching
requirements, or other funding limitations?
APPLICATION/APPROVAL
PROCEDURE
How does someone apply for this program?
What specifically must be included in the
application to be eligible? Who should it be
submitted to? When can it be submitted? Is
there a deadline?
REPORTING REQUIREMENTS
What kind of reporting is required if awarded?
What is the deadline of these reports?
SPECIAL PROGRAM REQUIREMENTS
Are there any fees associated with applying? Is
there an administrative fee that must be paid
with the application? Are there procedures for
check issuance that must be followed?
CONTACT
City of Coffeyville
Trisha Purdon, Economic Development
11 E. 2nd Street, P.O. Box 1629
Coffeyville, KS 67337
Phone: (620)252-6171
Email: [email protected]
Other Point of Contact
Name, Position
Address
City, State, Zip
Phone:
Fax:
Email:
Website:
100